Gold prices could keep climbing as Trump’s trade policies rock markets – National | Globalnews.ca

Markets world wide proceed to sink on fears about President Donald Trump’s protectionist trade policies, and traders keep plowing cash into gold, with futures hitting one other document excessive Monday.

Trump’s newest spherical of tariffs roll out Wednesday, which Trump has been calling “Liberation Day.”

Curiosity in shopping for gold can rise sharply in occasions of uncertainty, as anxious traders search secure havens for his or her cash. Gold prices have been spiking as Trump’s tariff policies have began a world trade warfare that’s roiled monetary markets and threatened to reignite inflation for households and companies alike.

If tendencies proceed, analysts say gold’s value could proceed to climb within the months forward. However valuable metals are additionally unstable belongings — so the longer term isn’t promised.

Right here’s what to know.

On Monday, the going value for New York spot gold hit a document $3,122.80 per troy ounce — the usual for measuring valuable metals, which is equal to 31 grams. That’s about $886, or 40%, larger than a 12 months in the past.

The worth of spot gold is up 19% because the begin of 2025, per the info agency FactSet. In contrast, the inventory market has tumbled. The benchmark S&P 500 is down 4.5% this 12 months as even blue chip shares have pale.

Get every day National information

Get the day’s prime information, political, financial, and present affairs headlines, delivered to your inbox as soon as a day.

Gold futures additionally reached a document in buying and selling Monday, hitting near $3,157.40 an oz.

Numerous it boils all the way down to uncertainty. Curiosity in shopping for gold sometimes spikes when traders develop into anxious — and there’s been plenty of financial turmoil in latest months.

The heaviest uncertainty lies with Trump’s escalating trade warfare. The president’s on-once more, off-once more new levy bulletins and retaliatory tariffs from a few of the nation’s closest conventional allies have created a way of whiplash for each companies and shoppers — who economists say will foot the invoice by way of larger prices.

2:36
Enterprise Information: Tumultuous market response to tariffs

Confidence started to slip at first of the 12 months for each U.S. households and companies because of fears of inflation and tariffs. These worries appear to solely be worsening, as U.S. shopper confidence has been eroding for a number of months.

Over the past 12 months, analysts have additionally pointed to sturdy gold demand from central banks world wide amid geopolitical rigidity, together with wars in Gaza and Ukraine.

Advocates of investing in gold name it a “secure haven” — arguing the commodity can serve to diversify and stability your funding portfolio, as nicely as mitigate attainable dangers down the highway. Some additionally take consolation in shopping for one thing tangible that has the potential to extend in worth over time.

Nonetheless, specialists warning towards placing all of your eggs in a single basket. And never everybody agrees gold is an effective funding. Critics say gold isn’t at all times the inflation hedge many say it’s — and that there are extra environment friendly methods to guard towards potential lack of capital, such as spinoff-primarily based investments.

The Commodity Futures Trade Fee has additionally beforehand warned individuals to be cautious of investing in gold. Valuable metals will be extremely unstable, the fee stated, and prices rise as demand goes up — that means “when financial anxiousness or instability is excessive, the individuals who sometimes revenue from valuable metals are the sellers.”

In the event you do select to put money into gold, the fee provides, it’s necessary to teach your self on secure buying and selling practices and be cautious of potential scams and counterfeits available on the market.

—AP Enterprise Author Matt Ott contributed to this report.

&copy 2025 The Canadian Press