Fresh Trump tariffs catapult gold prices to record high
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Gold has hit an eighth record-high level so far in 2025, driven by US President Donald Trump’s tariff threats, which have fuelled economic concerns.
PHOTO: REUTERS
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Bengaluru – Gold prices soared to a record high on Feb 11 as investors flocked to the safe-haven asset after US President Donald Trump imposed new 25 per cent tariffs on steel and aluminium imports, fuelling concerns over a potential trade war and inflation.
Spot gold rose 0.4 per cent to US$2,917.80 per ounce as of 5.10am GMT (1.10pm Singapore time), after hitting a record high of US$2,942.70 earlier in the session.
US gold futures firmed 0.3 per cent to US$2,944.10.
Mr Trump substantially raised tariffs on steel and aluminium imports
Gold has hit an eighth record-high level so far in 2025, driven by Mr Trump’s tariff threats, which have fuelled global growth uncertainties, trade war concerns, and inflationary pressure.
Bullion is traditionally considered a hedge during political and economic instability.
“The risk of a global trade war is putting pressure on trading in physical bullion and driving financial markets to get exposure to gold as a part of what can be loosely described as a de-dollarisation theme,” said Capital.com financial market analyst Kyle Rodda.
“Buyers seem to be somewhat price insensitive because dealers are doing what they can to ship gold into the US to avoid any potential tariffs slapped on the metal.”
The threats have ignited another gold rush, propelling the safe-haven metal to new heights and bringing the glittering US$3,000 milestone into view.
Tariffs may exacerbate US inflation, with investors awaiting the US consumer price index on Feb 12 and producer price index data on Feb 13.
US Federal Reserve chair Jerome Powell is also due to testify before Congress on Feb 11 and Feb 12.
Spot silver firmed 0.4 per cent to US$32.16 per ounce.
“While tariff fears may support silver, gains could be capped by falling industrial demand in the face of Trump’s tariffs,” said FXTM senior research analyst Lukman Otunuga.
Platinum eased 0.4 per cent to US$989.50, while palladium rose 0.4 per cent to US$986.97.
The two metals are used for jewellery but their main use is in catalytic converters for cars, trucks and buses. REUTERS
