Gold surges above $3055 as US tariffs fuel safe haven demand💡
Yesterday, Donald Trump announced 25% tariffs on autos, signaling that he could offer China a tariff cut in case of positive progress in negotiations. However, markets interpret the 25% auto tariffs as a renewed trade war, fueling demand for safe-haven assets.Today, we can see gold prices up by almost 1.1%, surging above $3,050 per ounce after the yesterday Trump announcement. Also, silver follows gold, rising 1.2%.
- The U.S. auto tariffs are permanent and will take effect on April 2, with collections beginning April 3. Additionally, tariffs on lumber and pharmaceuticals are expected to follow, while “reciprocal tariffs will apply to all countries,” according to the Trump announcement.
- Surprisingly, the U.S. president also commented that “there will be another round on April 2,” increasing market uncertainty.
- Not only tariffs but also slowing U.S. economic growth, rising inflation expectations, and recession risk are pushing investors toward gold. According to S&P Global, the 12-month forward U.S. recession probability is now close to 25%.
GOLD (H1 interval)
GOLD surges more than 1% today approaching all-time high zone again.
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Source: xStation5
