Gold Prices Hit Historic Highs Amid Trade War Concerns
In a significant development, gold prices have surged to unprecedented levels, with valuations reaching $2,946 per ounce. This marks a historic peak in the market, driven primarily by rising concerns regarding U.S. trade policies under President Donald Trump and the fallout from escalating trade tensions.
The increasing price of gold reflects broader market anxieties about the impact of the trade war, particularly in relation to inflationary pressures. Tim Waterer, a financial markets expert with KCM Trade Consulting, posits that “the uncertainty linked to trade disputes, particularly with respect to inflation, could propel gold prices to $3,000.” This outlook underscores the prevailing sentiment among investors towards safe-haven assets in times of economic turbulence.
Recently, President Trump announced plans to impose a 25 percent tariff on vehicles, electronic components, and pharmaceutical imports starting next month. This follows earlier tariff measures: a 25 percent levy on steel and aluminum imports and a 10 percent tariff on all goods imported from China. Such aggressive trade actions have prompted speculation about possible repercussions for the economy, including inflation concerns.
In response to these changing economic dynamics, the U.S. Central Bank has indicated that there is no immediate intent to lower interest rates, as concerns about inflation resurfacing due to Trump’s policies become more pronounced.
The World Gold Council has reported a notable increase in gold purchases by central banks, which acquired 333 tons of gold following Trump’s election victory — signifying a significant year-on-year growth.
For the first time, the price of gold has also reached its highest point in the history of the Kurdistan Regional Government (KRG), reflecting a broader trend observed in global gold markets.
