Gold prices surged to a new record above $3,160 an ounce on Thursday. This spike follows US President Donald Trump announcing significant new tariffs on imports. The move raised fears of a global economic slowdown and increased demand for safe-haven assets like gold.
In early Asian trading, gold climbed as much as 1.1% after gaining 0.7% on Wednesday. Trump declared from the White House that a minimum 10% tariff would apply to all exports to the US. Several nations are facing steeper tariffs, including China at 34% and the European Union at 20%.
Interestingly, gold is exempt from these tariffs, making it a preferred choice for investors. On Thursday, spot prices hit a peak of $3,167.84 an ounce, surpassing Tuesday’s high of $3,149. A Hong Kong commodities strategist said, “Investors are clearly bracing for economic turbulence.” This shows gold’s strong appeal amid rising geopolitical and trade risks.
While gold soared, other precious metals had mixed results. Silver and palladium saw slight declines, while platinum edged higher in low trading volumes. Traders are now closely watching for possible retaliation from trading partners and any central bank actions to stabilize markets.