Gold surged to an all-time high on Thursday, driven by a wave of investor anxiety following U.S. President Donald Trump’s announcement of aggressive new tariffs against major trading partners. This move intensified the ongoing global trade war, prompting investors to flock to gold as a safe-haven asset.
Gold Prices Soar Amid Trade Tensions
Spot gold climbed by 0.4%, reaching $3,145.93 an ounce at 0018 GMT, after hitting a peak of $3,167.57 earlier in the session. Meanwhile, U.S. gold futures saw a modest increase of 0.1%, trading at $3,170.70.
The sharp rise in gold prices follows Trump’s Wednesday announcement that the U.S. would impose a 10% baseline tariff on all imports, along with additional duties on several countries, including some of the U.S.’s largest trading partners. This latest escalation in the trade war has sent shockwaves through global markets and left many U.S. allies questioning the strategy.
Further deepening the trade dispute, the Trump administration confirmed that a 25% tariff on global car and truck imports will take effect on April 3, with additional tariffs on automotive parts scheduled for May 3.
Gold Shines Amid Uncertainty
Gold, long viewed as a safe investment during times of political and financial turmoil, has surged over 19% this year. The precious metal’s rise has been fueled by uncertainty surrounding the trade war, potential interest rate cuts, geopolitical conflicts, and increased central bank buying.
In contrast, economic data paints a mixed picture. U.S. private payrolls rose more than expected in March, but economists remain cautious, warning that the labor market is showing signs of slowing amid rising economic uncertainty caused by the ongoing tariff battle.
Market participants are now awaiting the U.S. non-farm payrolls report, due Friday, for further insight into the Federal Reserve’s potential monetary policy moves.
Other Precious Metals Struggle
Meanwhile, other precious metals faced declines. Spot silver dropped 1.2%, falling to $33.61 an ounce. Platinum decreased by 0.8% to $975.93, and palladium lost 0.6%, slipping to $964.56.
As the trade war intensifies, all eyes will remain on the developments in U.S. trade policy, and whether these escalating tariffs will further disrupt global markets and the economy.
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