US President Donald Trump’s announcement of sweeping import tariffs has led to a brief retreat in gold prices after reaching an all-time high earlier in the day. Spot gold fell 1.4% to $3,090.00 as investors took profits amid concerns about trade tensions.
Gold hit a record peak of $3,167.57, driven by Trump’s policies aimed at spurring central bank buying and diversifying reserves away from the dollar. Analysts expect gold prices to rise further due to economic uncertainty and geopolitical mistrust.
The tariffs, which include a 10% base tariff on imports, have sparked global market volatility, while concerns about dampening economic growth and stoking inflation remain. However, certain goods such as copper, gold, energy, and minerals not available in the US are exempt from the duties.
Central banks are expected to support the metal’s rally, with buying aimed at diversifying reserves away from the dollar. Analysts predict gold prices will reach $3,200 over the next six months.
Source: https://www.reuters.com/markets/commodities/safe-haven-gold-hits-record-peak-trump-announces-sweeping-tariffs-2025-04-03