Gold has soared to a new all-time high, reaching $3,167.57 per ounce, as investors flock to safe-haven assets amid heightened trade war tensions. The surge follows President Trump’s announcement of a 10% baseline tariff on all U.S. imports and a 25% tariff on global car and truck imports set to take effect on April 3. These aggressive measures have rattled global markets, fueling economic uncertainty.
Analysts attribute gold’s rise to expectations of U.S. interest rate cuts, increased central bank buying, and growing geopolitical risks. Financial expert Kyle Rodda suggests that the economic slowdown caused by tariffs may prompt the Federal Reserve to adopt a more accommodative monetary policy, further supporting gold’s momentum.
Matt Simpson of City Index describes gold’s current trend as a “pure momentum trade,” with traders eagerly buying dips. However, legendary investors Warren Buffett and Howard Marks caution against blindly chasing gold. Buffett argues that gold is a non-productive asset driven by fear, while Marks warns of its volatility and speculative nature.
Investors now await the U.S. non-farm payrolls report for further clues on market direction. While gold remains a key hedge against uncertainty, experts advise a balanced investment approach. With market turbulence persisting, gold’s rally may continue, but sharp corrections remain a possibility.