Key Highlights:
Washington, April 2 (Hindustan Herald) – Gold prices soared to near-record highs on Wednesday after US President Donald Trump announced aggressive reciprocal tariffs, sparking fears of a full-blown global trade war and prompting investors to seek safe-haven assets.
Spot gold jumped 0.6% to $3,129.46 an ounce by 4:53 p.m. EDT (2053 GMT), while U.S. gold futures settled at $3,166.20, also up 0.6%. This comes a day after the yellow metal set a fresh all-time high of $3,148.88.
Trump’s Tariff Bombshell Jolts Markets
During an address at the White House, Trump announced a 10% blanket tariff on all US imports, along with targeted hikes of 34% on Chinese imports and 20% on goods from the European Union. The decision was presented as a push for “economic independence,” but it swiftly sent shockwaves through equities, commodities, and currency markets.
Trump’s poster showing a tariff breakdown was widely circulated online, adding to investor concerns about potential retaliation from global trade partners and the impact on supply chains, inflation, and growth.
Gold Benefits from Risk-Off Mood
“The reciprocal tariffs are much more aggressive than expected,” said Tai Wong, an independent metals trader. “This should lead to asset market selloffs and a weaker dollar, both of which are highly bullish for gold.”
Wong believes $3,200 is the next target, with market volatility expected to persist due to global uncertainty and trade negotiations.
Peter Grant, Vice President at Zaner Metals, noted:
“A breach of resistance at $3,147.41/$3,149.84 would bode well for a push to $3,200, and lend confidence to bullish outlooks that highlight $3,300 and even $3,500.”
Gold’s Meteoric 2025 Rise
Gold has gained over $500 in 2025 alone, with geopolitical tensions, sticky inflation, central bank buying, and now tariff turmoil driving relentless demand. The metal continues to outshine equities amid increased market fragility and global macro headwinds.
Wednesday’s tariff escalation only adds to that bullish momentum, especially with the dollar index falling 0.4%, making gold cheaper for non-dollar investors.
Upcoming Data to Watch
Markets are also bracing for Friday’s U.S. Non-Farm Payroll report, a key gauge of labor market strength and inflation direction. Earlier on Wednesday, the ADP private payrolls report showed faster-than-expected job additions in March, adding to mixed signals on economic resilience.
Precious Metals Performance – April 2
| Metal | Price | % Change |
|---|---|---|
| Gold (Spot) | $3,129.46/oz | +0.6% |
| Gold Futures | $3,166.20/oz | +0.6% |
| Silver | $33.99/oz | +0.7% |
| Platinum | $986.18/oz | +0.7% |
| Palladium | $975.93/oz | -0.8% |
Dollar Weakness Adds to Bullion’s Strength
The dollar index fell sharply after Trump’s announcement, extending gold’s upside. A weaker dollar typically supports commodities, especially precious metals, as they become more attractive to international investors.
Outlook: $3,200 In Sight, but Volatility Ahead
With inflation concerns mounting, and trade dynamics shifting rapidly, analysts believe gold remains well-supported in the near term. However, volatility is expected to increase sharply depending on:
- Retaliation from trade partners
- Central bank responses
- Inflation trajectory
- Currency market swings
“Uncertainty is gold’s best friend right now,” said an analyst at Citi Commodities Research. “And today’s tariff escalation has added fuel to the fire.”
Bottom Line: As Trump’s tariff moves reshape global trade equations, gold continues its climb as a global safe-haven, with $3,200 potentially just the beginning.
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