The price of gold has surged beyond the $3,000-an-ounce mark for the first time on record, with the spot price climbing 0.4 per cent to hit $3,000.87 an ounce in early Friday trading.
Mounting geopolitical pressures and President Trump’s aggressive trade tactics have rattled investors, sending them scrambling for safety in precious metals.
A sharper focus on economic threats in the United States and abroad has prompted a sell-off in American stocks, leaving the S&P 500 down in correction territory. Gold, traditionally viewed as a safe haven, has now advanced by about 17 per cent this year, setting 13 all-time highs along the way.
“Gold continues to price uncertainty, specifically tariff uncertainty,” said analysts at RBC Capital Markets. “While economic uncertainty is rising, vibes and sentiment are deteriorating, and recession probabilities have risen well above 30 per cent, we still view gold’s price patterns as tied to tariffs.” They noted that “general uncertainty and chaos” were “very supportive factors of gold”.
On Thursday, President Trump threatened to levy 200 per cent tariffs on European wine and champagne in retaliation for a 50 per cent duty the EU plans to impose on American whiskey. The new threat follows Trump’s 25 per cent tariffs on steel and aluminium imports earlier this year.
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