Spot Gold set a new all-time high of $3,128.13 per troy ounce on Monday, as US President Trump’s tariff plans fueled concerns of a wider global trade war, triggering a rush to safe haven assets.
The Trump administration’s reciprocal tariffs, which are set to take effect on April 2nd, now come in the spotlight, as many believe they may reignite inflation and hinder GDP growth.
And, auto tariffs are to take effect on April 3rd.
“Markets’ 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,” KCM Trade chief market analyst Tim Waterer was quoted as saying by Reuters.
“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.”
Trump said over the weekend he was “pissed off” at Russian President Vladimir Putin and threatened to impose secondary tariffs of 25% to 50% on buyers of Russian oil if he feels Russia is blocking his efforts to put an end to the conflict in Ukraine.
Trump also threatened Iran with additional tariffs in case Tehran fails to make nuclear deal. This further added to concerns over an expanding trade war.
Spot Gold was last up 0.97% on the day to trade at $3,114.91 per troy ounce.
The yellow metal has surged 9.02% so far in March, being on course for its best monthly performance since March 2024.
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