Gold prices surged to a new record high of USD3,164 per ounce, driven by heightened risk aversion following President Donald Trump’s tariff announcement. Reports say the new rates, which include a 10 percent baseline tariff on all imports, will see higher rates for countries with trade surpluses. China, for instance, faces a 34 percent tariff, the EU 20 percent, and Japan 24 percent, with a 25 percent tariff imposed on foreign-made automobiles. Trump’s announcement, which included a chart comparing tariffs imposed by these countries on U.S. imports, aims to boost domestic manufacturing and address trade deficits.
The surge in gold prices, reports say, reflect the growing global uncertainty and investor concerns, which are also supported by expectations of rate cuts by central banks and strong demand for gold-backed or exchange-traded funds or ETFs. Notably, China’s gold ETF added 233,000 ounces, further bolstering gold’s appeal.
Also, weak U.S. job data and a disappointing manufacturing report have prompted investors to shift focus toward Friday’s nonfarm payrolls report, which could offer more clarity on the Federal Reserve’s policy direction. As the global economic landscape remains uncertain, gold continues to be viewed as a barometer of investor sentiment and global health.
