Finance Desk – Gold prices went up as investors rushed to buy the safe-haven metal after former US President Donald Trump announced new 30% tariffs on European Union and Mexico, set to begin next month.
What Happened?
- Spot gold was trading at $3,372.75 an ounce early Thursday in Singapore, up 0.5%.
- The metal gained 0.6% last week and is still near its record high of over $3,500 an ounce, reached in April.
Why Is Gold Rising?
Trump has been sending letters to global leaders, warning them about higher tariffs, including to Canada, Brazil, Mexico, and EU.
With Trump’s August 1 deadline approaching and trade tensions rising, investors are turning to gold as a safe investment.
What Else Is Supporting Gold?
- Uncertainty in global trade due to Trump’s changing policies
- Geopolitical tensions in various regions
- Strong demand from central banks buying gold
- Gold has already gained over 25% this year, largely due to fears about the global economy.
Other Metals
- Silver is trading near its highest level since 2011
- Platinum and palladium slightly dipped
- The Bloomberg Dollar Spot Index was up 0.1%
