Gold Soars to $3,000! Trump's Tariffs and Ukraine War Fuel Record Highs!

2025-03-17 00:00:36.48

Gold prices surged to a record high of $3,005 an ounce on Friday, fueled by investors seeking safe haven assets amid concerns about President Trump's tariffs and the ongoing geopolitical instability. The price briefly touched $3,000 before settling slightly lower. Experts attributed the surge to the "extreme uncertainty" surrounding global trade due to the Trump administration's policies and retaliatory measures from other countries. The rising gold price reflects broader investor concerns about the US economic outlook, with former Treasury Secretary Larry Summers citing a lack of confidence in the country's leadership. The imposition of 25% tariffs on steel and aluminum imports, along with Trump's threat of a 200% tariff on EU alcoholic beverages, further exacerbated the situation. This uncertainty is paralyzing businesses and fueling fears of a global economic slowdown. The war in Ukraine also significantly contributed to the rise in gold prices, with Russia's rejection of a US-proposed ceasefire adding to geopolitical instability. The conflict has driven a 60% increase in gold prices since the 2022 invasion, partly due to central banks increasing their gold reserves to mitigate risks associated with foreign reserves. A weakening dollar also boosted gold's appeal to international buyers.