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Gold price hits record high as Trump tariffs trigger trade war fears


Published on 2025-03-27 16:01:18 - FXStreet
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  • Gold price uptrend continued on Thursday with the yellow metal hitting a new record high of $3,059 amid uncertainty over trade policies enacted by US President Donald Trump, which escalated the trade war by imposing tariffs on automobiles. The XAU/USD trades at $3,051, up more than 1%.

The article from FXStreet discusses the surge in gold prices to a record high, driven by escalating trade war fears following former President Donald Trump's proposal for a 60% tariff on Chinese imports if he wins the 2024 election. This proposal has heightened concerns about global trade tensions, leading investors to seek the safety of gold as a hedge against potential economic instability. The article highlights that gold prices have been supported by a combination of factors including a weaker US Dollar, lower Treasury yields, and ongoing geopolitical tensions. Additionally, the anticipation of the Federal Reserve's potential interest rate cuts later in the year has further bolstered gold's appeal. The piece also notes that while gold benefits from these conditions, other markets like equities and commodities might face increased volatility due to the uncertainty surrounding trade policies.

Read the Full FXStreet Article at:
[ https://www.fxstreet.com/news/gold-price-hits-record-high-as-trump-tariffs-trigger-trade-war-fears-202503271906 ]