Gold Keeps Shining Like Sun
The US's new tariffs officially went into effect, boosting the precious metal at the last trading session for the week
The US’s new tariffs officially went into effect, boosting the precious metal at the last trading session for the week. Fears of more significant trade disruptions increased when Trump swiftly fulfilled his promise to impose a 90-day pause on most trading partners while raising tariffs on Chinese imports to 145 percent.
Conversely, China imposed higher import duties of 84 percent on US goods on Thursday. Gold Futures traded above $32oo in Asia’s trading session on Friday as investors increased buying pressure on the bullion metal.
Investors remain cautious about the escalating tensions between China and the U.S.
The bullion metal’s high interest continues to be driven by the ongoing uncertainty surrounding trade policy, as gold is regarded as a hedge against geopolitical and economic instability.
Economists and analysts indicate that the surge in gold prices is a typical reaction to investor apprehension regarding the global economy. President Donald Trump raised tariffs on China to 145 percent on Wednesday, despite proposing a 90-day tariff pause that would exclude a baseline of 10 percent.
Preston Caldwell, chief US economist at Morningstar, noted in a report, “We’ll make some tweaks to our economic forecast, but we still expect a major rise in inflation, slowing economic growth, and roughly a 40 percent risk of a recession this year.”
The Wells Fargo Investment Institute’s gold target range for the end of 2025 was previously set at $2,800 to $2,900 per ounce but has since been increased to $3,000 to $3,200. The bank attributes this adjustment to increased demand for perceived safe havens and ongoing geopolitical uncertainties.
According to Wells Fargo, gold prices have surpassed previous limits due to a weaker dollar and other contributory factors.
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