Gold prices surged to a historic peak above $2,800 per ounce, driven by a perfect storm of market uncertainties.
President Trump’s announcement of impending 25% tariffs on Mexican and Canadian imports, coupled with additional threats toward China, has intensified fears of a broader trade conflict.
This market anxiety, combined with concerns about US fiscal policy and potential inflationary pressures from tax cuts and immigration reform, has propelled investors toward safe-haven assets. The Federal Reserve’s decision to hold interest rates steady and adopt a wait-and-see approach, along with anticipated inflation data, has further supported gold’s appeal.
The precious metal’s fifth consecutive weekly gain reflects growing investor anxiety over potential trade wars and their economic impact, while the Federal Reserve maintains a cautious stance on monetary policy amid inflation concerns.