Trump’s tariffs are driving a gold rush

Gold appears to be the safe haven amid the economic turmoil triggered by President Donald Trump’s tariffs, according to investors. The price of gold has surged since Trump’s initiation of a 10 percent tariff on all US imports, hitting a record high of over $3,500 per ounce recently. This surge is in contrast to the stock market decline of more than 8 percent over the last month due to the uncertainties surrounding these tariffs. Additionally, Treasury bonds and the US dollar have been impacted, with bond yields rising significantly, reflecting a lack of investor confidence in the US economy. Trump’s comments on Federal Reserve Chair Jerome Powell have further escalated concerns about the economy, leading to a decrease in the US dollar’s value. Consequently, investors are turning to gold as a reliable investment due to its intrinsic value and limited supply, which historically holds up well during economic crises. Although the price of gold slightly decreased following talks of de-escalating trade tensions with China, projections suggest that gold prices will continue to rise, especially if central banks worldwide increase their gold purchases. Gold has historically been a safe investment during times of economic instability, and unless drastic changes are made in economic policies, it is likely to remain a popular choice for investors.