RAW MATERIALS
* Spot gold rose 1.1% to $5,068.05 an ounce as of 0121 GMT, after hitting a record high of $5,110.50 the day before.* US gold futures for February delivery added 0.4% to $5,063.0 per ounce.
* To make matters even murkier geopolitically, US President Donald Trump said on Monday he would raise tariffs on South Korean cars, timber and pharmaceuticals to 25%, while criticizing Seoul for failing to reach a trade deal with Washington.
* This was after he threatened tariffs on Canada in the backdrop of a thawing relationship between the two countries when Canadian Prime Minister Mark Carney visited China earlier this month.
* The rising yen took a toll on the dollar, which languished near a four-month low as it faced further pressure from its own problems, including a looming US government shutdown and Trump’s erratic policymaking. [USD/]
* A weaker dollar makes gold cheaper in dollar terms for foreign buyers.
* The Federal Reserve is expected to keep interest rates steady at its monetary policy meeting starting later on Tuesday, overshadowed by a Trump administration criminal investigation into U.S. central bank chief Jerome Powell, a developing effort to unseat Fed Governor Lisa Cook, and the upcoming appointment of a successor to take over from Powell in May. [FEDWATCH]* Elsewhere, Zijin Gold will buy Canada’s Allied Gold for about C$5.5 billion ($4.02 billion) in cash as the Chinese miner steps up its global expansion at record high prices. Gold’s unprecedented rally has expanded miners’ margins and cash flows, fueling consolidation.
* Spot silver rose 6.3% to $110.39 an ounce after hitting a record high of $117.69 on Monday. The white metal is already up 55% so far this year.
* Spot platinum lost 2.5% to $2,688.12 an ounce after hitting a record $2,918.80 in the previous session, while palladium rose 0.1% to $1,980.50.
DATA/EVENTS (GMT)
1500 US consumer confidence Jan
(Reporting by Ishaan Arora in Bengaruru; Editing by Rashmi Aich)
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