Gold Prices Reach New High Amid Trade Tariffs Fears

Published: April 2, 2025, 07:59 PM

Gold hit a new record in early Asian trading at $3,165.64 per ounce. The market shows a clear link between demand for safety and new tariffs. U.S. President Donald Trump set the tariffs. Investors see a rise in risk as trade rules change and worry spreads to markets around the world.

Trump’s Tariff Rules

On April 1, President Trump set a 10% fee on all imports. He also put fees on 18 countries. The rules aim to stop what he sees as unfair trade. China gets a 54% fee. The European Union faces a 20% fee. Other nations see fees from 24% to 46%. Investors think these fees may raise import costs and slow trade. They fear prices may rise and spending may drop in the U.S.

Safe Bet Boost for Gold Prices

Investors seek a safe place for their money. They turn to gold and the Japanese yen. A weak U.S. dollar adds to the trend. Gold futures for June reached $3,198.40 per ounce. In contrast, platinum dropped 1.1% to $996.85 per ounce, silver fell 1.2% to $34.235 per ounce, and copper slid 2.2% to $4.9200 per pound.

Impact of Tariff Exemptions

Some items do not meet the new fees. The White House said copper, drugs, wood, gold, energy, and certain minerals stay clear. Investors still worry. They see a risk that higher costs for importers will pass to buyers.

Conclusion

Gold’s new high shows how the market reacts when rules change. Investors hold to safe bets as trade fees press on the economy. This trend is likely to last in the coming days.

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