Gold prices surged to a record high of $3,115 per ounce on Wednesday as investors sought safe-haven assets amid growing economic and trade uncertainties linked to U.S. President Donald Trump’s unpredictable policies.
Analysts from ING attribute gold’s continued rally—now up over 16% year-to-date—to heightened concerns over trade and tariffs. The latest spike followed Trump’s announcement of permanent 25% tariffs on auto imports, exacerbating global trade tensions.
Market experts expect ongoing central bank purchases and rising exchange-traded fund (ETF) inflows to sustain gold’s upward trajectory.
Meanwhile, copper retreated from its nine-month high as expectations of tight supply outside the U.S. waned. Reports suggest that tariffs on copper imports into the U.S. could be imposed within weeks rather than months, contributing to the metal’s price decline.
Tariffs typically exert bearish pressure on industrial metals like copper, particularly in a slowing global economic environment where inflation remains elevated. Persistent inflation could also force the U.S. Federal Reserve to delay or even reconsider potential interest rate cuts.
With the U.S. economy expected to decelerate due to the impact of tariffs and China grappling with economic recovery challenges, demand for industrial metals is likely to weaken in the near term.
Analysts observe that gold’s rising value reflects broader economic trends, stating, “With inflation concerns mounting and geopolitical uncertainties persisting, gold’s surge underscores its significance not just as a commodity but as a critical component of global financial strategy.”
