Gold is Flying, Trump's Policy Briliant Or Blunder?
Gold prices continue to set new records in 2025 with the endless help of Trump's steps which are actually intended to strengthen the United States economy. The tariffs that the US President is trying to impose are made to generate profits and are believed to be a negotiating tool for America against its trading partners and enemies.
April 2 and April 3, 2025 are also the days of setting new tariffs for all countries which Trump calls "Liberation Day" or a day of freedom where Trump is ready to impose retaliatory tariffs on all countries in order to get what he calls "fairness" in tariffs. While on April 3, 2025 Trump will impose tariffs on all cars that are not produced in the US.
So will these tariffs benefit the dollar and the US economy? So far, if we look at the movement of the US dollar and the US economic data report, there are still no good results, even the US dollar tends to be under pressure until it is traded far at the level of 104 which previously touched the area of 109 after the inauguration. The latest report from the manufacturing sector also shows a contraction in manufacturers in the US while on the other hand the Fed said that US inflation is still quite high.
Uniquely, what Trump did actually made the price of gold soar because investors and market players were worried about what would happen to global trade which was predicted to be chaotic. In the midst of this situation and the uncertain geopolitics in the Middle East and Russia-Ukraine, everyone is looking for a stable hedge asset and in this case gold is the best of all traditional hedges.
Source: (mrv@Newsmaker)
