Gold Surpasses $5,000! Canadian Tariffs & Shutdown Concerns Panic in the Market
Gold prices exploded again, breaking through $5,000 per troy ounce, driven by a surge in safe-haven demand. The main trigger came from the risk of new tariffs and growing concerns about a potential US government shutdown.
On the New York Stock Exchange, gold futures rose 2.1% to $5,083.50 per troy ounce, after previously trading above $5,090 during the same session. This indicates that the market is still aggressively seeking gold despite being in the "new" price zone.
From a geopolitical and trade policy perspective, President Donald Trump threatened to impose 100% tariffs on Canadian goods if Canada signs a trade deal with China. This threat fueled fears of a widening trade war and put investors on the defensive.
Meanwhile, concerns about a US government shutdown added to the pressure. Several Democratic Senators—angered by federal actions in Minneapolis—began taking positions that increase the risk of a temporary government shutdown.
Gold also received a strong boost from last week's trend. The precious metal posted its biggest weekly dollar gain in history, fueled by a weaker dollar and ongoing concerns about the Federal Reserve's independence, according to Deutsche Bank analyst Jim Reid.
It's not just gold; silver is also on the rise. Silver futures surged 6.8% to $108,195 after hitting a new record overnight, confirming the strong safe-haven movement across the precious metals market.
Source: Newsmaker
