Gold prices continue to climb as investors seek stability during growing concerns over U.S. trade policy, particularly President Donald Trump’s fresh tariff threats. With uncertainty clouding the global economy, many are turning to gold—a traditional safe-haven asset—to protect their investments.
On Tuesday, spot gold nudged up by 0.3%, reaching $3,219.99 an ounce by mid-morning. This follows Monday’s record-breaking peak of $3,245.42, showcasing how global tensions are fueling strong demand for the yellow metal. U.S. gold futures also echoed the rise, settling at $3,235.50.
Much of this movement stems from increasing fears of a full-blown trade war, as the U.S. pushes forward with investigations into key import sectors like pharmaceuticals and semiconductors. Trump recently announced plans to reveal new tariffs on imported chips within the week, adding further uncertainty to global trade dynamics.
Gold, which doesn’t generate interest, tends to perform better when central banks adopt a cautious approach—just like what we’re seeing from the Federal Reserve. The Fed is currently in wait-and-see mode, with traders expecting up to 83 basis points in rate cuts by year-end. Lower rates generally boost gold’s appeal, especially during economic slowdowns.
At the same time, demand is also surging in China. Chinese gold ETFs have already seen more inflows in just a few weeks of April than in the entire first quarter. This suggests strong confidence among both Asian and Western investors that gold will continue its upward march.
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Experts say the combination of higher inflation, geopolitical tension, and sluggish economic growth will likely keep gold in high demand. With central banks and individual investors both increasing their holdings, gold is more than just a trend—it’s becoming a key shield in uncertain times.
As the market watches how Trump’s tariff announcements unfold, all eyes will remain on gold as a crucial barometer of investor sentiment.
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