The price of gold has reached an unprecedented $3,000 per ounce, driven by demand for safe-haven assets as investors express concerns over President Donald Trump’s tariffs and geopolitical tensions. Prices peaked at $3,005 before stabilizing at $2,994. Jason Hollands from Evelyn Partners described gold as the preferred asset in times of panic, reflecting the current uncertainty in global trade due to the Trump administration’s unpredictable tariff policies and retaliatory measures.
On Wednesday, a 25% tariff on all steel and aluminum imports into the United States was implemented, prompting immediate counteractions from Canada and the European Union. Trump further escalated tensions by proposing a 200% tariff on EU alcoholic beverages unless they rescinded their 50% tariff on American spirits.
The fluctuating and delayed trade policies have paralyzed businesses, unsure whether to hire or invest, leading to fears of a global economic slowdown. The ongoing war in Ukraine also plays a role in gold’s rise. Russia’s rejection of the US-proposed ceasefire has reignited geopolitical instability, with Russian President Vladimir Putin questioning the proposal and demanding concessions from Kyiv.
Gold prices have risen approximately 60% since the 2022 invasion of Ukraine, with central banks, including China’s, increasing their gold reserves to avoid foreign reserve seizures, as experienced by Russia. Additionally, the recent weakening of the dollar has bolstered gold prices, making it more attractive to international buyers.
— news from CNN
