Gold rally continues; Starmer looks at China trade

Good morning and welcome back to AM City live blog.

Gold’s incredible rally continued Tuesday morning after breaking the $5,100 mark for the first time.

The rush to safe haven assets increased after Trump threatened Canada with 100 percent tariffs if the country “makes a deal with China.”

Last week Canadian Prime Minister Mark Carney announced a “strategic partnership” with China and agreed to reduce tariffs, which Trump initially praised as “a good thing.”

But tensions between the neighbors have risen again in recent days after Carney’s speech in Davos in which he said the US-led world order was broken.

Trump’s row with Europe over Greenland’s future also caused stock markets to stay away, after he walked back his tariff threat following a row with European leaders.

Fears of a return to US shutdowns also rocked already jittery markets, after Democrats threatened funding for the Department of Homeland Security following the shooting of Alex Pretti, a 37-year-old intensive care nurse, by federal immigration agents in Minneapolis on Saturday.

Elsewhere, the increase in gold prices also occurred because the yen continued to strengthen against the dollar.

Markets are increasingly wary of Japanese government intervention, which may require American help, after Prime Minister Sanae Takaichi warned of action against “highly abnormal movements”.

Monday’s gain is the latest in a historic run for the metal, with its price skyrocketing since Trump’s inauguration in January 2025.

Richard Hunter, head of markets at Interactive Investor, said: “Investing in paradise remains in demand given the volatile backdrop, and silver posted a six per cent gain as a result.”

We’ll keep you up to date on this and more.

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