Gold prices soared to a new record on Thursday, with an ounce of the precious metal trading at $2,983.50 at 1810 GMT, marking a significant rise of 1.68% for the day. This surge comes amid growing uncertainties fueled by U.S. President Donald Trump’s aggressive trade policies, which continue to weigh on global markets.
Since Trump’s inauguration on January 20, gold has gained approximately 10% in value. Starting 2025 at $2,620 per ounce, the metal has increased by about $358 so far this year, setting new records on 12 separate occasions. For the year to date, gold has already risen by 14%, building on its 27% gain in 2024.
The rise in gold prices has been largely driven by escalating trade tensions, particularly following Trump’s imposition of tariffs. On Wednesday, Trump enforced 25% tariffs on all steel and aluminum imports, with a further 20% tariff placed on Chinese goods starting March 4. He also threatened to impose 25% tariffs on imports from Canada and Mexico, though these measures were postponed after negotiations with the two countries’ leaders.
The latest tariff threat came on Thursday when Trump warned of imposing 200% tariffs on alcohol imports from the European Union unless the EU removes a 50% tariff on American whiskey. This latest move further stoked fears of a global trade war, as countries, including the EU, vowed to retaliate.
As tensions rise, investors continue to seek the safety of gold, which has historically performed well in times of economic and geopolitical uncertainty. The metal’s price trajectory suggests it could continue to benefit from the ongoing trade disruptions.
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