Gold Hits All-Time High on Trump Policy Uncertainties
Gold price climbed to an all-time high of $3115 on Wednesday in the global commodities market amidst increase move into safe haven. U.S president Donald Trump unpredictable trade has been identified as the key driver for gold so far in 2025. At the same time, copper continues to retreat from nine-month highs as trade tensions intensify, according to ING note.
Gold prices has soared by more than 16% year-to-date, extending its momentum from 2024. Price of Gold surpassed the previous record after US President Donald Trump announced “permanent” 25% tariffs on auto imports, intensifying trade tensions.
Analysts at ING said they see uncertainty over trade and tariffs, along with central bank buying and inflows into exchange traded fund holdings continuing to buoy gold prices.
Meanwhile, copper has continued to retreat from its nine-month high as expectations for the ex-US tightness are retreating following reports earlier this week that US tariffs on copper imports could be imposed within weeks, not months.
Tariffs are bearish for copper and other industrial metals in the context of slowing growth and keeping inflation higher for longer. If US inflation remains persistent or rebounds, it could prompt the Federal Reserve to delay or increase interest rate cuts.
With growth in the US likely to slow on the back of tariffs and China already struggling to revive its economy, demand for copper and other industrial metals is likely to weaken looking ahead.
“With inflation concerns rising and geopolitical tensions stirring uncertainty, gold’s climbing value hints at broader economic shifts.
“These trends, combined with evolving trade policies and monetary strategies across major economies, suggest a period where gold could continue to shine not just as a commodity, but as a pivotal element in global financial strategies”. CBN to Open N800bn Treasury Bills for Subscription
