Gold shone between tariff war

The impact of the tariff war, led by Donald Trump, was not limited to business relationships and manufacturing sectors. This shook the global economy and saw huge ups and downs in the world’s stock markets. But in the midst of this economic turmoil, if anything continues to trust, it is “gold”-the yellow metal that always shines in times of crisis.

Gold reached historical height

On Friday, the price of gold reached a record level of $ 3,227.52 an ounce on the metal trading platform, which shows a huge increase of about 20% from the beginning of this year. This figure is not just a number, shows how gold becomes a symbol of safe investment when the rest of the assets are falling.

What are the reasons for increasing the glow of gold?

There are many reasons behind this tremendous rise in gold prices. Let us understand them one by one.

1. Tariff War increased global uncertainty

After Donald Trump’s decisions to increase tariffs, there was panic among investors around the world. There was an atmosphere of uncertainty in global trade. Whenever such situations arise, investors move towards options that are considered stable and safe – and gold is at the top of them.

Trading platform Kinesis Money According to senior metal analyst Frank Watson, the tariff has not yet been implemented on precious metals as they are not seen as an industrial item. Trump’s policy aims to increase domestic construction, which will not be done by taxing gold. As a result, gold is currently out of tariff’s grip – and that is why its demand is increasing rapidly as a safe investment.

2. Dollar weakness became gold strength

The US dollar declined after the announcement of the tariff war. When the dollar is weak, gold becomes even more attractive to investors, especially for international buyers. This led to a bounce in demand and prices touched the height.

There is an inverted relationship between dollars and gold – when one falls, the other shines. And this is what we are seeing at the moment.

3. Possibility of cutting interest rates and fear of recession

Market experts believe that tariff war can affect global growth. To compensate for this, the US Federal Reserve may have to cut interest rates. When interest rates decrease, keeping money in banks decreases profits and investors turn to options such as gold.

The recession of the recession and the possibility of reducing interest rates have drawn investors towards gold and rapidly.

4. Geophysical stress further increased the demand for gold

Ukraine-Russia War, Gaza-Israel Conflict and other geopolitical instability have further increased the concern of investors. When there is tension globally, the gold again becomes a ‘safe haven’.

History is witness that gold has been the metal during every major war, crisis or economic recession in which people have expressed their trust – and this trend continues.

Will gold move forward?

Given the current situation, market experts believe that gold prices may rise even more. As long as issues like tariff war, dollar weakness and geopolitical tension will remain, the price of gold will continue to break one after the other.

Indicators signal: Still a chance?

For investors who have already invested money in gold, this time can be to take advantage. But it can be beneficial for those who are now thinking of investing, making a little wait or strategy. Experts recommend that investment in gold may be a better option for long -term protection – it is physical gold, gold bonds or ETFs.