Gold hits record high as Trump’s tariff hike fuels safe-haven demand
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Key Points: Gold surges to all-time high of $2,942.70 per ounce; Trump imposes 25% tariffs on steel and aluminum imports $3,000/oz milestone now within reach; CPI, PPI reports and Powell’s testimony in focus.
Gold Soars to New Record Amid Escalating Trade War Fears
Gold prices hit an all-time high of $2,942.70 per ounce on Tuesday, driven by strong safe-haven demand following U.S. President Donald Trump’s latest tariff hike on steel and aluminum imports. Spot gold climbed 0.3% to $2,916.37 per ounce at 07:01 GMT, while U.S. gold futures advanced 0.3% to $2,941.50 per ounce. This marks the eighth record high for gold in 2025, with $3,000 per ounce now firmly in sight.
Trump’s Tariffs Spark Inflation Concerns
Trump’s decision to raise tariffs on steel and aluminum to 25% "without exceptions or exemptions" has fueled fears of a multi-front trade war, potentially delaying expected Federal Reserve interest rate cuts. “The risk of a global trade war is driving financial markets to gain exposure to gold as a hedge against uncertainty and inflation,” said Kyle Rodda, financial market analyst at Capital.com. Traders are rushing to secure physical gold shipments into the U.S., anticipating possible tariffs on the metal itself in the near future.
Inflation Data and Fed Testimony in Focus
Markets are now closely watching this week’s U.S. economic data, including the Consumer Price Index (CPI) and Producer Price Index (PPI) reports, for further indications of inflation trends. Federal Reserve Chair Jerome Powell is scheduled to testify before Congress on Tuesday and Wednesday, and his comments could provide insight into the central bank’s stance on interest rates amid rising price pressures.
Silver, Platinum, and Palladium Under Pressure
While tariff fears are providing some support for silver, concerns over slowing industrial demand have weighed on prices. Spot silver fell 0.8% to $31.78 per ounce; Platinum eased 0.7% to $986.45 per ounce; Palladium declined 0.4% to $979.25 per ounce. “While tariffs may bolster silver demand as a safe haven, gains could be limited by declining industrial activity,” said Lukman Otunuga, senior research analyst at FXTM.
Market Outlook
Gold bulls eye the $3,000 milestone, with further upside potential if inflation data and Powell’s testimony suggest prolonged economic uncertainty. Industrial metals face downside risks as trade tensions could slow global growth. Traders remain focused on U.S. economic data, with CPI and PPI releases set to influence market sentiment this week.
Gold Soars to New Record Amid Escalating Trade War Fears
Gold prices hit an all-time high of $2,942.70 per ounce on Tuesday, driven by strong safe-haven demand following U.S. President Donald Trump’s latest tariff hike on steel and aluminum imports. Spot gold climbed 0.3% to $2,916.37 per ounce at 07:01 GMT, while U.S. gold futures advanced 0.3% to $2,941.50 per ounce. This marks the eighth record high for gold in 2025, with $3,000 per ounce now firmly in sight.
Trump’s Tariffs Spark Inflation Concerns
Trump’s decision to raise tariffs on steel and aluminum to 25% "without exceptions or exemptions" has fueled fears of a multi-front trade war, potentially delaying expected Federal Reserve interest rate cuts. “The risk of a global trade war is driving financial markets to gain exposure to gold as a hedge against uncertainty and inflation,” said Kyle Rodda, financial market analyst at Capital.com. Traders are rushing to secure physical gold shipments into the U.S., anticipating possible tariffs on the metal itself in the near future.
Inflation Data and Fed Testimony in Focus
Markets are now closely watching this week’s U.S. economic data, including the Consumer Price Index (CPI) and Producer Price Index (PPI) reports, for further indications of inflation trends. Federal Reserve Chair Jerome Powell is scheduled to testify before Congress on Tuesday and Wednesday, and his comments could provide insight into the central bank’s stance on interest rates amid rising price pressures.
Silver, Platinum, and Palladium Under Pressure
While tariff fears are providing some support for silver, concerns over slowing industrial demand have weighed on prices. Spot silver fell 0.8% to $31.78 per ounce; Platinum eased 0.7% to $986.45 per ounce; Palladium declined 0.4% to $979.25 per ounce. “While tariffs may bolster silver demand as a safe haven, gains could be limited by declining industrial activity,” said Lukman Otunuga, senior research analyst at FXTM.
Market Outlook
Gold bulls eye the $3,000 milestone, with further upside potential if inflation data and Powell’s testimony suggest prolonged economic uncertainty. Industrial metals face downside risks as trade tensions could slow global growth. Traders remain focused on U.S. economic data, with CPI and PPI releases set to influence market sentiment this week.