Gold Prices Surge 2% Amid Trump’s Tariff Threats
Gold prices rose 2% on Friday, reaching $3,345.99 per ounce, as investors sought safe-haven assets amid uncertainty surrounding US President Donald Trump’s tariff threats. Trump’s proposal suggested imposing 50% tariffs on European Union goods. It also included a 25% tax on non-US-made iPhones. This sparked a sell-off in global stock markets. The S&P 500 fell 0.89%, while the Nasdaq dropped 1.21%.
Market Reaction
- Gold prices jumped 2% on the day, with US gold futures rising 1.6% to $3,346.60.
- The US dollar fell 0.6%, making gold cheaper for international buyers and contributing to the price surge.
- Platinum prices rose 0.3% to $1,078.15, hitting a high not seen since May 2023, due to tight market supplies.
Investor Sentiment
- Independent metals trader Tai Wong attributed the gold price increase to Trump’s recent threats, which have made stock markets nervous.
- UBS analyst Giovanni Staunovo noted that low platinum supplies above ground have tightened the market.
Other Precious Metals
- Silver remained steady at $33.08 per ounce.
- Palladium dropped 2.4% to $990.93 per ounce, but is still set to end the week with gains.
