Mint Quick Edit | Gold’s price spike reflects a global anxiety
- The metal has hit yet another high on the eve of Trump’s ‘Liberation Day.’ In the rise of gold, it’s easy to discern deep concerns over what the US may be set to liberate itself from under his leadership.
As US President Donald Trump sends shockwaves through global markets, one asset class that stands gleaming is gold. On Tuesday, its price reached a new record high of nearly $3,150 per ounce in the international market amid concerns over the global economy taking a big hit once Trump’s reciprocal tariffs come into force from 2 April in the US.
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That his tariffs will fuel inflation is prompting investors to seek refuge in the safety of gold. Then there’s the effect of uncertainty over the US dollar’s fate, not to mention other “safe assets" like Treasury bonds. Not just individuals, even central banks have been stacking up bulky bullion buys.
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America’s blatant weaponization of its commercial dominance has driven countries to diversify their foreign exchange reserves and gold is a solid store of value.
The more Trump rattles the world, the better this metal might do.
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On US tariff policy, a moment of reckoning is upon us. What Trump’s “Liberation Day" will deliver on Wednesday has everyone on edge. To the extent gold’s recent resplendence reflects investor anxiety over the future of finance, its price spike conveys fears of the US liberating itself from the burden of economic wisdom.
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