Gold Hits Record High on Weak Dollar as Trump Tariff Risks Loom

Gold Hits Record High on Weak Dollar as Trump Tariff Risks Loom

(Bloomberg)-Gold reached the highest new level ever with the decline in the dollar and traders sought safety amid concerns about President Donald Trump’s measures.

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The alloys rose up to 1.4 % to $ 2,798.59 an ounce, exceeding their highest level in October. The dollar makes the weakest alloys more attractive for investors who hold other currencies as they are priced in the American currency.

The softness came in Greenback after it reduced the expected rate widely by the European Central Bank and the latest data that showed the modified GDP that has been adjusted in the United States by 2.3 % in the fourth quarter after a rise of 3.1 % in the three-precedent- the month period.

The precious metal has been circulated in a volatile way since the United States elections, as Trump’s decisive victory initially sparked a sale as investors flocked to more dangerous assets related to his pro -growth agend. But it has fallen in recent weeks, as the president’s repeated threats to the demanding customs tariffs are a haven.

“You have uncertainty about what will happen with Trump, with his policies, definitions, and such things that can affect the growth of the United States,” said Phil Stripos, his chief strategy in the market in Blue Line Alexest. “When you get a height of inflation and grow growth, you get a recession, gold is one of the best goods in that environment.”

“I think this is what people were putting. Stippal said:” There is a renewed power, and a renewed desire to participate in this product. “

Trump’s policies are widely seen by economists as inflation and may harm economic growth. Federal Reserve Chairman Jerome Powell said on Wednesday that the US Central Bank was in a “waiting and vision” position regarding the potential impact of the new management policies.

Powell and his peers in the Federal Open Market Committee kept fixed interest rates at their first meeting of this year, adding that they will not push for low prices because they are waiting for further progress in inflation.

Although Trump’s plans are still unclear, it has set a final date on Saturday to obtain a 25 % tariff on Mexico and Canada, and he also said that he intends to impose a “much larger” comprehensive fee than the number 2.5 % previously proposed by Treasury Secretary Scott Pisent.

Fears of influence have already defeated the precious metal markets, as the prices of the United States of gold and silver rises above their international standards recently, merchants and merchants in mineral transport to the United States before imposing any tariff.

The continuous fears of US debt swelling make alloys attractive to investors, and many analysts believe that the gathering continues this year as central banks seek to diversify their reserves and reduce their dependence on the dollar.

The gold spot increased by 1.2 % to 2,791.79 ounces from 12:25 pm in New York.

-With the help of Sibella Gross and Jack Ryan.

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