Amidst US President Donald Trump’s latest announcements to tighten tariffs, global markets have been shaken again, with gold hitting a new record high. On Monday morning, the price of the precious metal rose to $3,110.76 per ounce, its highest level in history. Financial analysts attribute the rise in gold prices to investors’ growing concerns about global economic stability amid the threat of a full-scale trade war, The National has reported.
Over the past month, gold has risen by 6.5%, and over half a year — by more than 16%. Experts note that the metal is increasingly acting as a “protective asset” amid heightened geopolitical tensions and macroeconomic turbulence. Speaking aboard Air Force One, Trump confirmed his intention to impose a new package of tariffs on Wednesday, dubbing the day “liberation day.” At the same time, the president emphasized that the restrictions would apply to “all the countries we’re talking about,” hinting at the intention to hit the entire spectrum of importers, regardless of the size of the trade deficit.
Global markets react to tariffs
Stock markets in Asia immediately reacted to the news: Japan’s Nikkei 225 fell by almost 4%, South Korea’s Kospi – by 3%, while Hong Kong’s Hang Seng index lost 1.7%. A decrease also occurred in Shanghai and Taiwan’s Taiex – by 0.97% and 3.75%, respectively. Negative dynamics were also recorded in American futures: the S&P 500 fell by 0.77%, and the Nasdaq – by 1.36%.
Financial analysts note that the markets are in a state of increased turbulence, and investors are looking for safe assets, primarily gold. “Risk appetite is almost gone, the dollar is weakening, and gold continues to move to uncharted heights,” said Ipek Ozkardeskaya, senior analyst at Swissquote. Trump’s tariff strategy, which includes a 25% tariff on cars, steel, aluminum, as well as plans for a 10% tariff on Canadian energy, has become the epicenter of a new wave of global concern about the future of international trade.
Uncertainty pushes investors to gold
The new tariff initiatives, aimed not only at China but also at key US neighbors — Canada and Mexico — have sparked a wave of criticism from economists and businesses. According to analysts, such an escalation can not only increase the cost of imports, but also weaken consumer activity, which in turn could slow economic growth. Goldman Sachs has already cut its 2025 US GDP growth forecast from 2.4% to 1.7%, citing tariff risks as the main reason for the revision.
Ms. Ozkardeskaya stressed that while last week’s GDP update showed an improvement, the overall trend remains negative: the US economic growth rate slowed from more than 3% to 2.4% in the fourth quarter of 2024, and, according to forecasts by the Atlanta Federal Reserve Bank, could fall to almost 1.5% in the first quarter of 2025. In view of this, Goldman Sachs has raised its target for gold to $3,300 per ounce by the end of the year. The bank’s analysts cite increased demand from central banks and significant infusions into gold exchange-traded funds. All of these factors make gold the main financial “fortress” for those seeking to escape the instability brought by Washington’s new tariff policy.