Gold hits record high as Trump’s tariff probe rattles markets
Gold surged to a new all-time high as investors sought safety amid renewed trade tensions, triggered by U.S. President Donald Trump’s latest move to investigate tariffs on critical minerals — potentially escalating the global trade war.
Bullion gained as much as 1.89% on Wednesday to climb above $3,291 an ounce for the first time, surpassing the previous all-time peak set on Monday, News.Az reports, citing Bloomberg.
Traders were whiplashed again by a slew of tariff headlines, with Trump launching an investigation into the need for levies on critical minerals.
The precious metal has climbed more than 20% this year and hit a series of record highs as the escalating trade war creates anxiety over a possible global recession and as investors struggle to take long-term positions due to the unpredictability of tariff announcements from Washington.
On Tuesday, Trump called on China to reach out to him to kick off trade negotiations after Beijing ordered airlines not to take further deliveries of Boeing Co. jets.
The US administration also announced this week investigations into semiconductors and pharmaceutical imports, after placing sector-specific tariffs on steel and aluminum, automobiles and car parts. It also said it is negotiating with dozens of other trading partners to lower trade barriers in exchange for relief on higher duties.
Leading banks remain optimistic about gold’s prospects over the coming quarters as investors add to holdings in gold-backed exchange-traded funds and central banks continue to accumulate the metal. Goldman Sachs Group Inc. is forecasting that prices will rally to $4,000 an ounce by mid-2026.
“The power struggle between major countries will continue,” said Luchen Wang, a Shanghai-based analyst at Galaxy Futures Co. “Gold’s appeal as a safe-haven asset means it’s more likely to rise than fall in the near- to medium-term.”
Traders are also betting there will be at least three Federal Reserve rate cuts this year. Monetary easing is generally positive for the precious metal.
Gold was up 1.84% to $3,289.91 an ounce as of 2:15 p.m. Singapore time. The Bloomberg Dollar Spot Index fell. Silver gained, while palladium and platinum edged lower.
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