Gold prices soared to a new record high, driven by heightened demand for safe-haven assets. This surge is primarily attributed to growing anxieties surrounding potential escalations in the U.S. trade war and geopolitical tensions stoked by President Trump’s policies. Concerns about inflation also played a role.
- Gold surpassed $3,110, reaching an all-time high.
- Demand was fueled by its safe-haven status due to concerns over President Trump’s widening trade war.
- Trump is considering higher trade tariffs on a wider range of countries, with plans to unveil reciprocal duties on April 2.
- Trump threatened Russia with 25-50% secondary tariffs on oil if Moscow impedes efforts to end the Ukraine war.
- Trump threatened Iran with additional tariffs and potential military action if a nuclear agreement isn’t reached.
- San Francisco Federal Reserve Bank President Mary Daly expressed decreased confidence in the expectation of two interest rate cuts this year following Friday’s inflation data.
The confluence of international trade disputes, geopolitical instability, and concerns about inflationary pressures are creating a favorable environment for gold. Investors are seeking refuge in the precious metal, perceiving it as a safe store of value amidst economic uncertainty. The potential for increased tariffs and military action only adds to the allure of gold as a hedge against turbulent times. Furthermore, uncertainty surrounding future interest rate policy contributes to the upward pressure on gold prices.