Gold Rises as Fears Mount Over Trump's Reciprocal Tariff Plans
Gold prices rose on Thursday as U.S. auto tariffs escalated global trade tensions ahead of the April 2 deadline for reciprocal tariffs from the world's largest economy.
Spot gold was up 0.3% at $3,028.65 per ounce as of 06:50 GMT, while U.S. gold futures gained 0.5% to $3,036.10 per ounce.
Trade Tensions Drive Gold Prices Higher
On Wednesday, U.S. President Donald Trump announced a 25% tariff on imported cars and light trucks, set to take effect next week, further intensifying the global trade war.
Investors feared that these tariff policies could fuel inflation, slow economic growth, and heighten trade tensions, prompting a shift towards gold as a safe-haven asset. These concerns pushed gold to a record high of $3,057.21 per ounce on March 20.
Gold Market Outlook
According to Aakash Doshi, Global Head of Gold at SPDR ETF Strategy, gold is expected to surpass the $3,100 mark in the second quarter. He added, "The market could potentially push another 8%-10% higher by the end of 2025 if the current macro and physical market tailwinds sustain for the yellow metal."
Gold remains on an upward trajectory as concerns over U.S. trade policies and their global economic impact persist. With the reciprocal tariffs set to take effect soon, market volatility may increase further, potentially driving gold prices to new highs in the coming months.
