Trump Trade Fears Take Gold and Palladium Futures on a Wild Ride

  • Volatility gauges for gold, palladium climb to 1-year high
  • Investors are pricing in risk premium, TD’s Bart Melek says
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Donald Trump’s trade policies are breathing new life into precious metals.

Measures of 60-day historical volatility for gold and palladium futures climbed to the highest in about a year. Volatility in silver also increased. Prices were whipsawedBloomberg Terminal last week as Trump administration officials tried to calm markets, while their boss warned of short-lived “pain” from a trade stand-off with China. In Russia, the largest palladium producer, dozens of companies and key allies of President Vladimir Putin are facing a new wave of U.S. sanctions.