Gold prices have surged to a record high of $2,910.99 per ounce, driven by safe-haven demand and uncertainty over global trade. The metal’s value has increased 1.6% in the past 24 hours.
US President Donald Trump announced plans to impose an additional 25% tariff on all steel and aluminium imports, which has fueled concerns over inflation and trade wars. This move is expected to exacerbate US inflation and impact investors’ expectations.
Analysts believe that gold’s price surge reflects more uncertainty and tension in global trade, rather than a direct result of the tariff war. Marex analyst Edward Meir stated, “Obviously the tariff war is behind the rise; it just reflects more uncertainty and more tension in the global trade situation.”
Additionally, investors are awaiting US Consumer Price Index (CPI) and Producer Price Index (PPI) data due later this week, which may influence gold prices. If the CPI and PPI data surprise on the downside, it could weigh on the dollar and increase gold prices.
Gold has already hit its seventh record high this year, driven by Trump’s tariff threats and uncertainty over global growth, trade wars, and inflation. The metal is seen as a safe-haven asset during times of economic uncertainty.
Source: https://www.reuters.com/markets/commodities/gold-hovers-near-all-time-highs-trumps-tariff-threats-lift-safe-haven-demand-2025-02-10