Gold Hits Record as Trump’s Tariff Spree Sparks Haven Demand
Gold climbed to a record after President Donald Trump unveiled his sweeping “reciprocal” tariffs, imposing a minimum levy of 10% on imports and stoking fears his agenda may trigger a global economic slowdown.
Bullion was one of the few commodities exempted from the tariffs, according to a White House fact sheet. The metal’s haven status was underlined when it rose as much as 1.1% in Asian trading after the president’s Rose Garden address, before it pared some gains. That followed a 0.7% increase on Wednesday.
Trump said he will apply a minimum 10% tariff on all exports to the US, and dozens of countries with the largest trade imbalances face even higher rates. The levy imposed on China is 34%, while for the European Union it’s 20% and for Vietnam it’s 46%.
Investors are flocking to gold as concerns mount over the health of the global economy. The precious metal has surged 20% this year after a ferocious run in 2024 that was largely driven by massive central bank purchases and robust demand in Asia.
“The demand forces that have led to above-normal gold appreciation are likely to continue,” said Michael Hsueh, an analyst at Deutsche Bank AG. Additional support is expected from central bank buying, bullion-backed ETF accumulation in developed markets, and Chinese insurance firms’ potential to make a “significant allocation” of the precious metal, he said.
Meanwhile, silver and palladium will be hit by the negative impact to global growth expected from the tariffs, Hsueh said.
Spot gold was up 0.4% to $3,146.29 an ounce at 11:09 a.m. in Singapore, after earlier reaching an all-time high of $3,167.84. Silver and palladium dropped, while platinum edged higher.
Source : Bloomberg
