Why are gold prices soaring amid US President Trump’s tariffs?
Why are gold prices soaring amid US President Trump’s tariffs?
Fears of trade wars and geopolitical uncertainty appear to have boosted gold prices.
Author: Al Jazeera Staff
Published on: 12/02/2025 | 00:00:00
AI Summary:
Trump’s tariffs on steel and aluminium imports kick in this week. We look at why the price of the yellow metal has soared in recent days. Gold exports pointing to a desire for a safe asset. Spot gold rose by 0.3 percent to $2,916.37 per ounce as of 07:01 GMT. By March of that year, gold prices spiked to $2,070 per ounce, from $1,910 the month before. Trump signed proclamations late on Monday, reinstating a 25 percent tariff rate on steel from all countries. He also eliminated tariff exclusions on products that use both metals. Canada is also the largest exporter of aluminium. The US imports roughly a quarter of the steel it uses. Countries and experts have pointed to the economic volatility caused by Trump’s actions and words. China had hit back at Trump’s previous tariffs by adding their own on a range of US imports, including coal and crude oil. Al Jazeera’s Katrina Yu, reporting from Beijing, says these latest tariffs likely won’t start a trade war, but they are a step in that direction.
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