The price of gold soared to a new all-time high on Monday, driven by mounting investor concerns over escalating trade tensions following United States President Donald Trump’s latest tariff announcement. The U.S. leader said during the weekend that he will announce new 25% tariffs on Monday (Feb. 10) on all steel and aluminum imports into the U.S.
Additionally, Trump announced plans to introduce reciprocal tariffs against various foreign countries on Tuesday (Feb. 11) and Wednesday (Feb. 12) , further fueling uncertainty in global trade. These measures have amplified concerns over a potential trade war, pushing investors toward gold as a hedge against financial volatility.
At 1:48 am ET, gold jumped 1.12%, trading at $2,892.20 per ounce. Other precious metals also followed an upward trajectory, with silver rising 0.60% to $32.05 per ounce. Meanwhile, platinum gained 0.30%, selling at $985.33 per ounce at 1:54 am ET, and palladium edged up 0.04% to $963.47 per ounce at 1:55 am ET.
“Gold remains in a sweet spot, with little standing in its way,” Westpac Banking Corp. analyst Richard Franulovich said in a note. “An intrinsically unpredictable and disruptive Trump, hurtling tariff threats at allies and adversaries alike, alongside the threats of 100% tariffs on the BRICs if they diversify away from the dollar, all point to a lift in gold’s safe-haven appeal.”
The BRIC nations (Brazil, Russia, India, and China) have been exploring alternative trade and financial systems outside the U.S. dollar. The potential implementation of 100% tariffs against these economies, should they pursue further de-dollarization, has only intensified investor concerns, adding further bullish momentum to gold.
The surge in gold prices is also being attributed to rising inflation concerns. The new tariffs are expected to lead to higher prices for goods, which could further fuel inflationary pressures. Gold is often seen as a hedge against inflation, as its value tends to rise when the cost of living increases.
Other factors contributing to the gold price surge include: Increased geopolitical risks: Tensions remain high in many parts of the world, including the Middle East and Ukraine. Geopolitical risks tend to boost demand for gold, as investors seek safe-haven assets.
Strong demand from central banks: Central banks around the world have been increasing their gold reserves in recent years. This trend is expected to continue, which is providing further support for gold prices.
For now, gold remains king, standing as a reliable store of value amid the deepening uncertainty surrounding global trade and economic policy.
