Gold prices have stabilized following an initial surge, driven by President Trump’s confirmation of tariffs on key trading partners. As of March 4, 2025, bullion traded near $2,891 per ounce, reflecting a 1.2% increase from the previous session. ?
The U.S. administration imposed 25% tariffs on imports from Mexico and Canada, effective March 4, 2025, aiming to address trade imbalances and enhance American economic competitiveness. Additionally, tariffs on Chinese goods were increased from 10% to 20%, further intensifying global trade tensions. ?
These measures have raised concerns about the global economic outlook, prompting investors to seek refuge in safe-haven assets like gold. The metal has experienced an 11% gain so far this year, reaching a record high of $2,956.15 on February 24. ?
Analysts suggest that continued policy uncertainty, including tariff fears, could push gold prices higher. Goldman Sachs has raised its gold price forecast to as high as $3,300 per ounce by year-end, citing increased demand from central banks and geopolitical uncertainties. ?
In summary, escalating trade tensions and policy uncertainties continue to drive demand for gold as a safe-haven asset. Market participants are closely monitoring developments in international trade policies and their potential impact on the global economy, which could further influence gold prices in the coming months.
