Trump's tariff wars pushed gold to a record high
Kyiv • UNN
The price of gold rose to an all-time high due to concerns about Trump's tariff plans. Investors are seeking refuge in assets amid a possible trade war.
On Monday, gold broke through the $3,100 mark and reached a historic high. This happened because investors turned to a safe-haven asset amid concerns that US President Donald Trump's tariff plans would expand the global trade war and provoke economic consequences, UNN writes, citing Reuters.
Details
Spot gold added 0.9% to $3,110.81 an ounce after hitting a record high of $3,115.79 earlier. In March, the ingot rose in price by more than 8%.
The dollar index (.DXY) fell by 0.2%, making dollar-denominated gold less expensive for buyers holding other currencies.
The level of concern in the markets is growing ahead of mutual announcements of tariffs in the United States, which supports high demand for gold as a defensive game
"If the tariff announcements this week are not as serious as feared, then the price of gold may start to retreat, as profit-taking from the highs may work," - added Tim Waterer.
Trump is expected to announce reciprocal tariffs on April 2, and duties on cars will take effect on April 3.
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Addition
On Sunday, the US president said he was "angry" with Russian President Vladimir Putin and would impose additional tariffs of 25%-50% for buyers of Russian oil if he felt Moscow was blocking his efforts to end the war against Ukraine. This further fuels concerns about a trade war.
Gold, which is traditionally seen as a hedging tool against political and economic uncertainty, has risen in price by more than 18% this year. The growth prompted several banks to increase their forecasts for 2025.
Meanwhile, San Francisco Federal Reserve President Mary Daly said that inflation data released on Friday confirms a decrease in her confidence that two interest rate cuts this year are a "reasonable" forecast.
Spot silver rose by 0.7% to $34.35 per ounce, platinum remained stable at $984.07, and palladium rose by 0.5% to $976.72. All three metals are set for monthly growth.
Let us remind
Oil falls in price, against the background of the market weighing ambiguous statements by President Trump regarding the possibility of imposing new sanctions on Russian oil. This will happen if Putin refuses to cease fire with Ukraine.
