Gold Price Hits All-Time High as World Braces for Trump Tariffs

The price of gold soared to an all-time high of $3,150.52 per ounce on Tuesday morning, as investors braced for potential economic fallout from U.S. President Donald Trump‘s unleashing of sweeping new tariffs, set to be unveiled on April 2.

A Safe-haven Asset

Gold, a safe-haven asset long regarded as a hedge against financial uncertainty, saw increased demand as markets reacted to Trump’s plan to impose “reciprocal” tariffs on all trade partners. He sees current trading terms as broadly unfair to the U.S.

Why It Matters

Trump’s planned tariffs could affect hundreds of billions in trade flows, rekindling fears of the kind of global slowdown seen during the U.S.-China trade war during his first term.

American consumers and businesses may also find themselves facing higher prices because import costs have increased substantially due to the new duties.

Though Trump is delivering on his campaign promise of tariffs, which he argues will protect American businesses and draw more investment into the U.S., the economic risks threaten to stoke voter resentment and derail his presidency.

What To Know

The president has dubbed April 2 “Liberation Day,” hinting at a broad reshaping of U.S. trade relationships. But investors fear a damaging trade war that will push the global economy into recession.

“Uncertainty is one of the main factors that has led to a renewed interest in gold,” Krishan Gopaul, senior analyst at the World Gold Council, told the Financial Times. “There is a general risk-off sentiment in the market at the moment.”

About E. J. McKay

E.J.McKay is a Shanghai-headquartered investment bank with a special focus on mergers & acquisitions. We are one of the most long standing independent investment banks in China, with core business of mergers & acquisitions and financing advisory.