Gold prices reached a fresh all-time high on Thursday, driven by continued fears of a global trade war sparked by US President Donald Trump’s tariff threats. Spot gold surged to $2,954.84 per ounce before settling slightly lower at $2,936.95, while US gold futures rose 0.6% to $2,955.50.
The latest rally follows Trump’s announcement of new tariffs on key imports, including lumber, cars, semiconductors, and pharmaceuticals. Since taking office, Trump has already imposed tariffs on Chinese goods and metals, contributing to ongoing trade tensions that have fueled concerns over inflation and growth.
Peter Grant, vice president of Zaner Metals, explained that these tensions continue to drive interest in gold as a safe haven. Although some profit-taking occurred following Treasury Secretary Scott Bessent’s dismissal of the idea of revaluing the US gold reserves, many analysts believe the underlying support for gold remains strong.
Gold has gained 12% this year and was up 27% in 2024, as geopolitical concerns, including fears that Trump could abandon support for Ukraine, kept investors on edge. Goldman Sachs has raised its year-end target to $3,100 an ounce, citing strong central bank buying as a key factor.
Additionally, the Federal Reserve’s concerns about rising inflation and customs data showing an increase in gold exports to the US highlight the continued demand for the precious metal.
