CommoditiesData

Gold Hits Historic $2,800: Trump’s Tariff Threats Explained

Gold Prices Surpass Historical Highs

Gold rose to $2,800 an ounce on Friday morning, marking a historic peak.

On Thursday, the price surged by nearly $40, closing at $2,797 per ounce. This unprecedented rise in value can be attributed largely to geopolitical tensions following U.S. President Donald Trump’s announcement regarding potential tariffs on BRICS nations.

In a statement conveyed through social media, Trump indicated, “We will impose conditions requiring commitment from countries opposed to a new BRICS currency, or any alternatives to the dominant U.S. dollar; failing to do so will result in a 100 percent increase in their tariffs.” This rhetoric has instigated volatility in global markets.

In response, Russia has warned that any U.S. effort to mandate dollar usage could have detrimental effects on international trade relations.

Furthermore, President Trump announced plans to increase tariffs on imports from Mexico and Canada by 25 percent effective immediately, amplifying concerns of a broader trade conflict.

The current trade uncertainties, coupled with the tension surrounding BRICS’ evolving economic alliances, have substantially influenced gold’s rising market attractiveness as a safe-haven asset.

Market participants are closely monitoring these developments, with concerns that the situation may evolve into an extensive trade war, adversely impacting global economic stability.

As of 16:30 Erbil time, key consumer spending data from the United States is set to be released, a critical factor that may influence gold prices in the near term.

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