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Gold hits record as Trump’s tariff spree sparks haven demand

Investors are flocking to gold as concerns mount over the health of the global economy. The precious metal has surged 20% this year after a ferocious run in 2024.

April 03, 2025 / 08:04 IST
The metal’s haven status was underlined when it rose as much as 1.1% in early Asian trade, shortly after Trump’s Rose Garden address. (Courtesy: Reuters photo)

Gold hit a new record above $3,160 an ounce after President Donald Trump unveiled his sweeping “reciprocal” tariffs, imposing a minimum levy of 10% on imports and stoking fears it may trigger a global economic slowdown.

Bullion was one of the few commodities exempted from the tariffs, according to a White House factsheet. The metal’s haven status was underlined when it rose as much as 1.1% in early Asian trade, shortly after the President’s Rose Garden address. That followed a 0.7% gain on Wednesday.

Trump said he will apply a minimum 10% tariff on all exports to the US, with dozens of countries with the largest trade imbalances facing even higher rates. The levy imposed on China is 34%, while for the European Union it’s 20% and for Vietnam it’s 46%.

Investors are flocking to gold as concerns mount over the health of the global economy. The precious metal has surged 20% this year after a ferocious run in 2024 that was largely driven by massive central bank purchases and robust demand in Asia.

Spot gold hit a new record of $3,167.84 an ounce, after peaking at $3,149 on Tuesday. Silver and palladium dropped, while platinum edged higher.

Bloomberg
first published: Apr 3, 2025 08:03 am

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