Introduction
Gold prices soared to record highs in Asian trading on Monday as concerns over U.S. President Donald Trump’s potential tariff expansions fueled a flight to safe-haven assets. Investors have been increasingly risk-averse, leading to a strong rally in gold throughout March.
Key Highlights:
✅ Spot gold hit a record $3,1115.96 per ounce
✅ Gold futures (June contracts) peaked at $3,147.0 per ounce
✅ Goldman Sachs forecasts a 35% probability of a U.S. recession within 12 months
✅ The U.S. dollar weakened, further supporting gold’s rise
Why Are Gold Prices Surging?
1. Safe Haven Demand Amid Trade War Fears
Gold’s latest rally was driven by a Wall Street Journal report indicating that Trump may impose broader and higher tariffs on a larger group of countries.
🔹 Key tariff expectations:
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A flat 20% tariff on all countries the U.S. has a trade deficit with
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At least 15 nations targeted, with the potential for more
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“Reciprocal tariffs” set to be announced on April 2
2. U.S. Recession Fears Intensify
Gold’s safe-haven appeal has also been strengthened by rising concerns over a potential U.S. recession. Goldman Sachs now places the odds of a recession at 35%, which has further supported gold’s price surge.
3. Broader Metal Markets Retreat & Dollar Weakness
While gold surged, other industrial metals declined due to fears that Trump’s tariffs could slow global trade.
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The U.S. dollar weakened, making gold cheaper for international buyers, leading to higher demand.
Market Outlook & Investment Implications
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Gold’s rally could continue if tariff fears escalate or global economic uncertainty persists.
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Traders should monitor Trump’s April 2 trade policy announcement for further clues.
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Investors may look at historical trends using the Commodities API for deeper insights into gold’s price behavior.
