ASX gold miners dive as Trump tariffs weigh on bullion price; BlueScope jumps
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The news: Gold miners lowered on the ASX as US President-elect Donald Trump threatened import tariffs of 25% on Canada and Mexico, strengthening the US dollar and sending bullion prices tumbling.
The numbers: ASX 200 gold stocks Vault Minerals (-4.41%), Emerald Resources (-2.83%) and Westgold Resources (-3.5%) were hit hardest by the sell-off by 12:55pm AEDT, as the materials sector edged up 0.3%.
Spot gold was flat at USD2,627.25 ($4,060.51) per ounce after sliding 3.4% in the previous session, according to Bloomberg data.
The context: Earlier today, Trump announced details of new tariff plans, including an additional 10% tariff on China, and a 25% tariff on all products from Mexico and Canada, for goods coming into the US.
The move sent the US dollar higher, making gold more expensive for many buyers. The Australian dollar also fell as a result and was buying 64.72 cents.
Bullion also fell on Monday on growing expectations of a ceasefire agreement between Israel and Hezbollah, reducing safe haven demand for gold.
Elsewhere, BlueScope was the best performing stock across the ASX 200, jumping 6.2%. Australia's largest steelmaker received a pass on tariffs in Trump's previous term, while tariffs on Chinese exports are expected to improve its bottom line.
