The price of gold has soared to an all-time high as concerns over an escalating trade war intensify. President Donald Trump’s recent decision to impose a 25% tariff on auto imports has fueled uncertainty, driving investors toward the safe-haven asset. Gold reached €2800 per ounce on Friday, marking a 0.9% increase and its fourth consecutive weekly gain. This year alone, the precious metal has risen by approximately 17%, achieving multiple record highs. The rally has been supported by central bank purchases, growing geopolitical tensions, and heightened macroeconomic uncertainties.
Investors are preparing for potential economic repercussions as additional U.S. tariffs are expected on April 2. Despite positive U.S. economic growth data for the fourth quarter, concerns about inflation and trade policies have overshadowed market optimism. Major financial institutions have raised their year-end gold price forecasts, with some analysts pointing to strong demand from central banks and increased inflows into gold-backed exchange-traded funds. Meanwhile, silver has also experienced robust demand, with prices nearing their highest levels since 2012.
