Gold Hits Unprecedented Peak
Gold prices have reached an unprecedented peak of over $3,000 an ounce, driven by increased demand for safe-haven assets amid escalating trade tensions.
TroibNews 
Gold prices soared to an unprecedented high on Thursday, exceeding $3,000 an ounce as investors, alarmed by escalating global trade tensions, flocked to safe-haven assets. This surge occurred amidst ongoing and unpredictable tariff announcements from the U.S.
On Wednesday, U.S. President Donald Trump's import taxes on steel and aluminum went into effect, raising fears in export-reliant Asian economies and triggering immediate retaliation from both the European Union and Canada. Before enforcing the tariffs, Trump had threatened to increase the levy on Canadian metals to 50%, but he reversed that decision after Ontario Premier Doug Ford lifted the 25% surcharge on electricity exports to several U.S. states.
Gold futures for April delivery momentarily touched $3,003.90 an ounce on the Chicago Mercantile Exchange Thursday night before pulling back to $2,989.50, marking a notable milestone as it was the first time a contract surpassed the psychologically significant $3,000 mark. This increase in gold prices reflects a nearly 14% rise this year, following a robust 27% gain in 2024.
“The risk-off market stance reflects investors’ expectations that trade tensions are likely to get worse before it cools, and are turning to safe-haven gold once again as a hedge against portfolio volatility,” said IG market strategist Yeap Jun Rong, as reported by Reuters.
In addition to global trade concerns, analysts point to the anticipated easing of monetary policy by the U.S. Federal Reserve as a contributor to the recent gold price rally. The Fed is projected to keep its key interest rate between 4.25% and 4.50% in the meeting set for the upcoming Wednesday.
“The potential impact of the tariff and trade threats are impossible to model, forcing the Fed to gauge economic data to help it determine its next move,” John Ciampaglia, CEO of Sprott Asset Management, remarked to the news agency, noting that analysts view the Fed as being in a "wait-and-see state."
Gold prices have hit 40 record highs in 2024, fueled by rising geopolitical tensions in the Middle East and Eastern Europe, uncertainty surrounding the U.S. presidential elections, interest rate cuts, and active gold purchases by key central banks, according to a World Gold Council survey.
In a recent analysis regarding commodity market volatility, Bart Melek, head of commodity strategy at TD Securities, pointed out that central banks have engaged in record gold buying in recent years, driven by concerns over the sustainability of the dollar's purchasing power and the geopolitical tensions between major economies.
Mathilde Moreau for TROIB News
On Wednesday, U.S. President Donald Trump's import taxes on steel and aluminum went into effect, raising fears in export-reliant Asian economies and triggering immediate retaliation from both the European Union and Canada. Before enforcing the tariffs, Trump had threatened to increase the levy on Canadian metals to 50%, but he reversed that decision after Ontario Premier Doug Ford lifted the 25% surcharge on electricity exports to several U.S. states.
Gold futures for April delivery momentarily touched $3,003.90 an ounce on the Chicago Mercantile Exchange Thursday night before pulling back to $2,989.50, marking a notable milestone as it was the first time a contract surpassed the psychologically significant $3,000 mark. This increase in gold prices reflects a nearly 14% rise this year, following a robust 27% gain in 2024.
“The risk-off market stance reflects investors’ expectations that trade tensions are likely to get worse before it cools, and are turning to safe-haven gold once again as a hedge against portfolio volatility,” said IG market strategist Yeap Jun Rong, as reported by Reuters.
In addition to global trade concerns, analysts point to the anticipated easing of monetary policy by the U.S. Federal Reserve as a contributor to the recent gold price rally. The Fed is projected to keep its key interest rate between 4.25% and 4.50% in the meeting set for the upcoming Wednesday.
“The potential impact of the tariff and trade threats are impossible to model, forcing the Fed to gauge economic data to help it determine its next move,” John Ciampaglia, CEO of Sprott Asset Management, remarked to the news agency, noting that analysts view the Fed as being in a "wait-and-see state."
Gold prices have hit 40 record highs in 2024, fueled by rising geopolitical tensions in the Middle East and Eastern Europe, uncertainty surrounding the U.S. presidential elections, interest rate cuts, and active gold purchases by key central banks, according to a World Gold Council survey.
In a recent analysis regarding commodity market volatility, Bart Melek, head of commodity strategy at TD Securities, pointed out that central banks have engaged in record gold buying in recent years, driven by concerns over the sustainability of the dollar's purchasing power and the geopolitical tensions between major economies.
Mathilde Moreau for TROIB News
