Gold prices surge 1.23% due to trade tariffs, safe-haven demand rises

From Investing.com: 2025-03-04 03:07:00

Gold prices rose by 1.23% due to US trade tariffs, reaching new heights amid safe-haven demand. President Trump’s 25% tariffs on Canada and Mexico, along with threats towards China, have investors turning to precious metals like gold and silver as a buffer against market uncertainty.

The euro strengthened against the US dollar by 1.07% after eurozone inflation surpassed expectations, reducing the likelihood of further rate cuts by the European Central Bank. However, the economic outlook remains clouded by potential tariff risks, which could have a significant impact on market stability moving forward.

The Australian dollar experienced a 0.27% gain against the US dollar but failed to hold above a critical level, hitting a one-month low. Concerns over trade disputes, global recession risks, and declining commodity prices have investors wary of the Australian dollar’s vulnerability, with the market grappling with the potential impact of tariffs on the global economy.



Read more at Investing.com: Gold Rallies Amid Tariff Concerns and Weaker US Dollar