Tariffs and Market Impact: Gold Surpasses $3,100

Gold remains the top safe-haven asset for investors amid the instability caused by President Trump’s ongoing trade tensions with key partners.

On Monday, the price of gold surpassed $3,100 per ounce for the first time, driven by uncertainty surrounding Trump’s tariff policies. As volatility spikes, investors are turning to gold as a protective asset. At the same time, regional currencies are experiencing sharp declines.

Further market concerns arise as Trump is expected to announce new reciprocal measures this Wednesday. Adding to the instability, geopolitical tensions between Trump and Vladimir Putin over the situation in Ukraine have intensified, further boosting demand for safe-haven assets, with gold emerging as the primary beneficiary.

Gold: The Clear Winner in a Climate of Uncertainty

With a volatile global outlook and politically driven market anxieties, the U.S. economy faces mounting challenges. Investors are reassessing their strategies, increasingly favoring gold as a strategic hedge.

The precious metal has seen strong investment inflows, reinforcing its role as a safe haven. With prices now above $3,000 per ounce, gold continues to solidify its position as a shield against economic and political instability.

So far this year, gold has risen 18%. Earlier this month, it crossed the $3,000 per ounce mark for the first time.

Leading financial institutions have revised their gold price forecasts upward. Goldman Sachs now projects gold will reach $3,300 per ounce by year-end, surpassing its previous estimate of $3,100. Meanwhile, Bank of America expects gold to hit $3,063 in 2025 and $3,350 in 2026—both higher than its earlier projections of $2,750 and $2,625, respectively.

Since taking office, Trump has imposed various tariffs aimed at protecting U.S. industries and reducing the trade deficit. His policies include a 25% tariff on imported vehicles and auto parts, along with an additional 10% tariff on all imports from China. On April 2, he is expected to announce a new round of reciprocal tariffs.