Gold value rises to record high due to tariff war

Published at: 11/04/2025 05:36 PM

Gold rose 1.9% to a record high of 3,237.89 dollars an ounce (28.35 grams) this Friday, as concerns about the impact of tariffs on the global economy boosted the attractiveness of the precious metal as a safe haven for investors.

Gold's safe haven status has been underscored this week, as President Donald Trump's lulls over tariffs led to frantic sales of U.S. stocks, bonds and the dollar, while fear of a global recession engulfed Wall Street.

“Gold is the best place to be in the market right now,” said precious metals analyst Liu Yuxuan, based in Shanghai, China. “The unprecedented trade tension has deepened distrust in the U.S. dollar, intensifying demand for other security assets,” he added. In markets, skepticism is growing about the possibility that trade talks before the next 90-day deadline will close on time.

This is despite the fact that the director of the White House Economic Council, Kevin Hassett, stated that the United States is “very advanced” in its talks with economic partners. Gold's rise of more than a fifth this year has also been driven by central bank purchases and hopes for further monetary easing by the U.S. Federal Reserve.

Last Thursday, data showed that core inflation in the US cooled considerably in March, and traders are now considering expectations of three interest rate cuts for the rest of the year, with the possibility of a quarter. In addition, silver, platinum and palladium also rose in price.

Mazo News Team