Gold surged to a fresh all-time high of $2,954.69 per ounce on Thursday morning, marking its 10th record this year amid mounting concerns over US President Donald Trump’s latest tariff threats.
The precious metal has gained 12 per cent since the start of 2024, as investors seek safe-haven assets. Spot gold climbed 0.7 per cent to $2,953.12 an ounce by 0853 GMT, whilst US gold futures rose 1.2 per cent to $2,970.7.
Since returning to the White House last month, the US President has unleashed chaos on the global economy with promises of tariffs on key industries and allies; pledging taxes of up to 25 per cent on Mexico and Canada.
Trump announced on Wednesday he would unveil new tariffs on lumber, cars, semiconductors and pharmaceuticals “over the next month or sooner”.
He has already imposed a 10 per cent tariff on Chinese imports and a 25 per cent tariff on steel and aluminium, with taxes on allies set to come into effect early next month.
Do you have a money story you’d like to share? Get in touch by emailing [email protected].
Gold surged to a fresh all-time high of $2,954.69 per ounce on Thursday morning
GETTY
In a separate development, Trump denounced Ukrainian President Volodymyr Zelenskiy as a “dictator” and warned him to quickly secure peace or risk losing his country.
Analysts have cited these geopolitical and economic tensions as being the primary reason investors are flocking to gold as the asset is considered a “safe haven” during times of financial instability.
David Morrison, a senior market analyst at Trade Nation, noted that many traders switch on their screens each morning expecting a significant overnight drop in gold prices.
“Instead, gold continues to make steady upside progress,” Morrison said. “It has been regularly posting fresh record highs since the beginning of February.”
Despite being technically overbought according to the daily MACD, Morrison observed that this hasn’t deterred fresh buyers. “One day that will change. But until then the bulls appear happy to make hay while the sun shines.”
Market analysts see the $3,000 level as increasingly within reach for the precious metal.
“The $3,000 level seems to be having a magnetic effect on the market and even though by most considerations the market is technically overbought, it seems determined to crack that magic level,” said independent analyst Ross Norman.
Norman added that “$2,950 is seen as the last chart resistance before the market elevates to challenge the $3,000 level and it is now looking like a question of when and not if.”
Minutes from the Federal Reserve’s latest policy meeting revealed that Trump’s initial policy proposals had heightened concerns over rising inflation, reinforcing the bank’s decision to hold off on further rate cuts.
In other precious metals, silver added 0.9 per cent to reach $33 an ounce, with Morrison noting it needs to hold this level to challenge October’s high of nearly $35.
LATEST DEVELOPMENTS:
Gold prices have surged in response to Trump’s tariff threats
GETTY
Lukman Otunuga, a senior market analyst at FXTM, broke down how the US’s looming tariff threat could impact Britain’s economy down the line, stating: “Trump‘s trade war threatens to cast a shadow over the FTSE100’s record run.
“While UK companies benefit from a weaker pound, any escalation in tariffs could lead to increased uncertainty, impacting investor sentiment.
“With the market nearing overbought levels, this week will be critical in determining whether the FTSE100’s bullish momentum can continue or if the risks outweigh the rewards.”
Internationally, Asia-Pacific markets slipped this morning as investor sentiment weakened amid concerns over potential US tariffs and expectations that the Federal Reserve could keep interest rates elevated for longer.
Last week, Trump indicated overnight that new tariffs on autos, semiconductors and pharmaceuticals could be implemented as soon as April 2.
However, the US President stopped short of targeting specific countries and the extend of the tax rate remains unclear.
