Gold surges above $3055 as US tariffs fuel safe haven demand💡
Yesterday, Donald Trump announced 25% tariffs on autos, signaling that he could offer China a tariff cut in case of positive progress in negotiations. However, markets interpret the 25% auto tariffs as a renewed trade war, fueling demand for safe-haven assets.Today, we can see gold prices up by almost 1.1%, surging above $3,050 per ounce after the yesterday Trump announcement. Also, silver follows gold, rising 1.2%.
- The U.S. auto tariffs are permanent and will take effect on April 2, with collections beginning April 3. Additionally, tariffs on lumber and pharmaceuticals are expected to follow, while “reciprocal tariffs will apply to all countries,” according to the Trump announcement.
- Surprisingly, the U.S. president also commented that “there will be another round on April 2,” increasing market uncertainty.
- Not only tariffs but also slowing U.S. economic growth, rising inflation expectations, and recession risk are pushing investors toward gold. According to S&P Global, the 12-month forward U.S. recession probability is now close to 25%.
GOLD (H1 interval)
GOLD surges more than 1% today approaching all-time high zone again.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
