Gold prices rise as Trump auto tariffs rattle markets, erode risk
Gold prices rose in Asian trade on Thursday, buoyed by renewed safe haven demand after U.S. President Donald Trump imposed 25% trade tariffs on all automobile imports, marking an escalation in his tariff agenda.
Goldman Sachs also hiked its 2025 gold price target, forecasting strong central bank demand and strong inflows from exchange-traded funds.
Trump’s tariffs- which will be imposed on April 2 along with a host of other duties, sparked a risk-off move across global markets, with Wall Street and Asian stocks clocking deep losses.
This drove safe haven plays into gold, amid growing fears that Trump will make good on his other tariff threats.
Spot gold rose 0.4% to $3,032.21 an ounce, remaining in sight of a recent record high. Gold futures expiring in May rose 0.5% to $3,067.42/oz by 01:10 ET (05:10 GMT).
Gold underpinned by haven demand on Trump tariff woes
While gold saw some profit-taking earlier this week, it still remained close to record highs as uncertainty over U.S. trade and economic policies underpinned haven demand.
Trump’s latest auto tariffs will affect several major economies, including Japan, Europe, and South Korea, and are also expected to drive up U.S. car prices, potentially underpinning inflation in the country.
Trump is set to announce a host of reciprocal tariffs on April 2 against at least 15 major U.S. trading partners. The U.S. President has also threatened to impose tariffs on key commodity imports, as well as other sectors such as semiconductors and pharmaceuticals.
