Gold prices have surged to new heights, reaching a record-breaking $2,947.01 per ounce, as the U.S. dollar strengthens in response to new tariff threats issued by U.S. President Donald Trump. The sharp rise in gold prices comes as the precious metal continues to attract investors seeking a safe-haven asset amidst escalating geopolitical and economic tensions.
Analysts attribute the upward momentum of gold to its established role as a hedge against inflation, especially given the increasing uncertainties in the global market. The latest tariff proposals have only added to concerns, pushing investors to seek security in assets like gold.
On Tuesday, President Trump unveiled plans to impose tariffs of up to 25% on imported automobiles, semiconductors, and pharmaceuticals, with these measures scheduled to take effect on April 2. While the tariffs aim to protect U.S. industries, they have also triggered concerns about potential economic disruptions, further driving demand for gold.
Alongside the rise in gold, the U.S. dollar has gained strength. Investors are anticipating that the Federal Reserve may maintain higher interest rates due to the inflationary pressures these tariffs could create. As of 10:35 GMT, the dollar had risen by 0.20% against the euro, trading at $1.0424, and by 0.14% against the British pound, valued at $1.2595.
This shift in the currency and commodity markets reflects growing market jitters as the global economy braces for the impact of the new trade policies.
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