Trump’s New Auto Tariffs Push Gold to Brink of All-Time High
Gold prices climbed sharply on Thursday, rising more than 1% to $3,053 an ounce—just shy of the all-time high of $3,057.21 set on March 20. The surge followed President Trump’s announcement of new 25% tariffs on imported cars and trucks, scheduled to begin next week, which has heightened global trade tensions.
Gold, traditionally viewed as a hedge against uncertainty and inflation, has benefited significantly from this environment, gaining over 15% this year. Analysts attribute the rise to economic uncertainty driven by U.S. policy decisions, with WisdomTree’s Nitesh Shah describing gold as a “defensive, anti-fragile asset.”
Investors are now focused on Friday’s Personal Consumption Expenditures data to gauge the Federal Reserve’s rate cut timeline, as lower interest rates typically favor non-yielding gold. Meanwhile, Goldman Sachs has raised its end-2025 gold price forecast to $3,300 per ounce, citing stronger ETF inflows and sustained central bank demand.
