Gold investors are on edge, closely watching for U.S. President Donald Trump’s next tariff decision as trade war fears drive the precious metal to historic highs. With the U.S. set to announce new reciprocal tariffs on April 2 and additional auto tariffs on April 3, market uncertainty has intensified, pushing investors toward safe-haven assets like gold.
According to Reuters, Spot gold surged 0.6% to $3,103.63 an ounce as of 0255 GMT on Monday, after briefly hitting an all-time high of $3,107.26 earlier in the session. This marks an 8% gain in March alone, adding to an 18% increase since the start of 2025, as fears of economic instability continue to fuel demand.
The latest market jitters stem from Trump’s warning that he may impose secondary tariffs of up to 50% on buyers of Russian oil if he believes Moscow is obstructing his efforts to end the war in Ukraine. This move, along with heightened U.S.-China trade tensions, has raised concerns about a prolonged economic slowdown.
Tim Waterer, chief market analyst at KCM Trade, noted that gold’s rally is being driven by investor anxiety. “Market anxiety levels have been ramping up ahead of the reciprocal U.S. tariff announcements, which is keeping gold in high demand as a defensive play,” he explained. However, he cautioned that “if the tariff announcements this week are not as severe as feared, then the gold price could start to backtrack as profit-taking from the highs may be triggered.”
A weaker U.S. dollar has also contributed to gold’s strength, with the dollar index (.DXY) slipping 0.2%, making gold more attractive to foreign investors. Meanwhile, fresh inflation data from the San Francisco Federal Reserve Bank has cast doubt on the likelihood of two interest rate cuts in 2025, further reinforcing gold’s appeal as a hedge against economic uncertainty.
Other precious metals followed gold’s upward trajectory, with silver rising 0.4% to $34.23 an ounce, while platinum and palladium edged higher, extending their monthly gains.
With Trump’s tariff policies set to unfold in the coming days, investors remain on high alert. If tensions escalate, gold’s record-breaking rally could gain even more momentum, further cementing its status as the ultimate safe-haven asset in times of global economic turmoil.
