Gold Prices Climb Amid Tariff Uncertainty

Gold prices rose in Asian trading on Thursday, driven by renewed safe-haven demand after U.S. President Donald Trump imposed a 25% tariff on all automobile imports, escalating global trade tensions.

Goldman Sachs also raised its 2025 gold price forecast, citing strong central bank demand and increased inflows into exchange-traded funds (ETFs).

Gold Prices Near Record Highs

• Spot gold rose 0.4% to $3,032.21 per ounce, staying close to recent record levels.
• Gold futures (May contracts) increased 0.5% to $3,067.42/oz by 05:10 GMT.

Trump’s tariffs, set to take effect on April 2, triggered a global risk-off move, with sharp declines in Wall Street and Asian stocks, leading investors toward gold as a safe haven asset.

Impact of Tariffs on Inflation and Trade

• Trump’s tariffs target key economies, including Japan, Europe, and South Korea.
• The move is expected to raise U.S. car prices, potentially driving up inflation.
• The U.S. President has also hinted at imposing tariffs on key commodities, including semiconductors and pharmaceuticals.
• Europe, Canada, China, and Mexico have criticized the tariffs and threatened retaliation, raising concerns over a global trade war.

Goldman Sachs Raises Gold Price Target

• The bank hiked its 2025 gold price forecast to $3,300/oz (previously $3,100/oz).
• Analysts expect Asian central banks to aggressively accumulate gold over the next 3-6 years.
• Strong ETF inflows and economic uncertainty could push prices as high as $3,680/oz by the end of 2025.

Other Metals Mixed

• Platinum futures fell 0.1% to $968.20/oz.
• Silver futures gained 0.4% to $34.345/oz.
• Copper prices rose 0.4% to $9,969.20 per ton (London Metal Exchange).

U.S. copper futures hit record highs earlier this week, driven by concerns over supply constraints if Trump imposes new tariffs on copper imports.