Gold Hits Another Record High as Tariff Impact Looms

On Thursday, gold experienced notable volatility, driven by President Trump’s recent tariff policy. Gold once again set a new record high, extending its rally beyond $3,070 per ounce at the time of writing.

Gold Surges on Safe-Haven Demand

Gold prices have soared to fresh highs as investors flock to safe-haven assets amid escalating trade tensions and inflation concerns.

Global currencies, particularly those tied to economies affected by the new auto tariffs—such as the Canadian Dollar and Japanese Yen—saw fluctuations. Meanwhile, the US Dollar experienced mild volatility throughout the day, indicating that capital is flowing into gold as investors seek risk aversion.

(Gold, Day Chart; Source: Ultima Markets MT4)

Gold hit a record high yesterday and continued its rally, reaching $3,077.40 per ounce as of this writing.

“Reciprocal Tariffs” Set for More Impact

President Donald Trump has announced a 25% tariff on imported automobiles and certain auto parts, set to take effect on April 2. While the move is intended to boost domestic manufacturing, it has sparked concerns over higher consumer prices and potential retaliatory measures from key trading partners.

However, the worst may be yet to come, as the “reciprocal tariffs” plan is expected to take effect in early April, potentially as soon as next week.

“The tariff decision has further fueled market uncertainty, raising concerns over inflationary pressures and potential economic slowdown,” said Ultima Market Senior Analyst Shawn.

He further noted, “Despite recent positive economic data from the U.S., the true impact of these tariffs may only become evident in Q2. It’s too early to be overly optimistic based solely on the latest data.”

US PCE Price Index in Focus

Markets are now turning their attention to the Fed’s preferred inflation gauge—the PCE Price Index, set for release today.

The data is expected to show a mild cooldown in inflation, aligning with February’s Consumer Price Index (CPI) report. However, if the PCE figure comes in higher than expected, it could further weigh on market sentiment and impact expectations for the Fed’s next policy move.

Disclaimer

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