BENGALURU- Jittery investors flocked to safe-haven assets on Thursday and pushed gold to a record high after US President Donald Trump unleashed more aggressive-than-expected import tariffs, kicking into higher gear an already heated global trade war.
Spot gold was up 0.5 percent at $3,148.05 an ounce, after hitting an all-time high of $3,167.57 earlier in the session.
US gold futures firmed 0.2 percent to $3,172.60.
On Wednesday, Trump unveiled a 10 percent baseline tariff on all imports to the US and higher duties on dozens of countries, including some of the United States’ biggest trading partners, deepening a trade war that has rattled global markets and bewildered US allies.
Analysts believe that Trump’s aggressive policy stance will slow down US economic growth and stoke inflation.
“There are a few reasons why tariffs are supporting gold demand. One is the slowdown that tariffs are likely to cause the US economy, raising the prospects of future rate cuts,” Capital.com’s financial market analyst Kyle Rodda said.
The Trump administration confirmed that the 25 percent global car and truck tariffs will take effect on April 3 as planned and duties on automotive parts imports will be launched on May 3.
