Gold prices hit record high as Trump tariffs fuel uncertainty
What's the story
Gold prices hit an all-time high today amid fears over US President Donald Trump's tariff policies.
The fears are stoking concerns of inflation and a possible global trade war.
Investors are flocking to gold for safety, pushing spot gold 0.5% higher to $2,945.83 per ounce earlier today.
During the session, it hit a record peak of $2,947.11 per ounce.
Market performance
Gold's performance and future prospects amid geopolitical tensions
So far this year, gold has gained 12% in value, consistently setting new records amid rising geopolitical and economic uncertainties.
US gold futures also rose by 0.9% to $2,963.80 per ounce today.
In India, the domestic gold market followed the global trend with prices for 24-carat gold hitting ₹8,804 per gram according to GoodReturns data.
Price drivers
Factors influencing gold prices: Tariffs, inflation, and central bank buying
President Trump's 10% tariff on Chinese imports and 25% on steel and aluminum have added to the uncertainty.
He recently announced additional tariffs on lumber, cars, semiconductors, and pharmaceuticals within a month, further intensifying trade war fears.
The Federal Reserve's meeting minutes revealed concerns about rising inflation due to these trade policies.
Central banks are also increasing their gold reserves while gold ETFs transition from net sellers to marginal buyers.
Market forecast
Gold's safe-haven appeal and potential to reach $3,000/ounce
Gold remains a preferred hedge against geopolitical risks with continuing conflicts and economic instability fueling demand.
Market experts believe that if the current economic and geopolitical trends continue, gold could touch the $3,000 per ounce mark.
"Uncertain outlooks for both global trade and inflation are proving to be conducive for gold," said Tim Waterer, chief market analyst at KCM Trade.