Introduction

Gold prices surged to new peaks during Asian trading hours as concerns mount over a potential increase in trade tariffs announced by U.S. President Donald Trump. This rising anxiety among investors has driven a significant rally for gold in recent weeks.

Market Highlights:

• Spot gold reached a record high of $3,115.96 per ounce.
• June gold futures hit $3,147.00 per ounce.
• Goldman Sachs assesses a 35% chance of a recession in the U.S. within a year.
• The U.S. dollar’s decline has further augmented the interest in gold as investors seek safe assets.

Why Is Gold Rising?

1. Safe Haven Demand During Trade War Concerns

The surge in gold prices is influenced by trade concerns, stemming from a Wall Street Journal report suggesting that Trump might impose heightened tariffs on a broader assortment of countries.

• Expected tariffs: A universal 20% duty applicable to multiple nations.
• Potential for targeting 15 or more countries and forthcoming reciprocal tariffs due to be revealed on April 2.

2. Increasing Recession Fears in the U.S.

Gold’s allure as a safe haven has intensified due to rising recession worries; Goldman Sachs places the odds at 35%, which further enhances the allure of gold.

3. Retreat in Broader Metal Markets and Dollar Weakness

While gold prices soared, other industrial metals have witnessed declines as fears surrounding tariffs jeopardize global trade.

• Furthermore, the U.S. dollar’s decline has made gold more attractive to international buyers.

Market Outlook and Investment Considerations

• The rally in gold might persist if trade tariff uncertainties escalate or if global economic concerns linger.
• Traders should keep an eye on Trump’s April 2 announcement regarding tariffs for further market signals.
• Investors can explore historical gold trends for deeper insights into price movements using the available research tools.