Gold’s Value Is Surging Under Donald Trump

Gold prices reached another all-time high on Monday, capping a lengthy rally—the latest stage of which some attribute to the economic policies of the new Trump administration.

Gold prices reached as high as $2,939.92 per troy ounce on Monday, and are currently still hovering above $2,900 as of the time of writing.

Why It Matters

Having spent the weekend at $2,860.99, the recent surge follows the latest tariff threats from President Donald Trump, who has now pledged to enforce a universal 25 percent duty on all steel and aluminum imports into the U.S.

Analysts suspect many are turning to gold amid fears that this, alongside Trump’s other trade policies, could put downward pressure on the U.S. dollar. People are banking on its long-standing reputation as a safe-haven asset and reliable hedge against currency inflation.

What To Know

Gold had been making significant gains even prior to the election and subsequent inauguration of Donald Trump, having risen some 43 percent over the past year and 13 percent over the past three months.

Prior to the presidential election, gains were largely attributed to enduring economic uncertainty, geopolitical tensions and robust demand from central banks globally.

With these factors still very much at play, the potential economic impacts of Trump’s trade policies have only accelerated gold’s historic rally, which has blown previous predictions out of the water and is now expected to push prices close to or beyond the $3,000/oz milestone by the end of the year.

What People Are Saying

“The three short-term drivers, I’d say, are Trump, Trump, Trump,” said Adrian Ash, director of research at BullionVault.

Ash told Newsweek that the “tariff risk” and its implications for global trade and geopolitics had “spooked the gold markets into rushing gold to America.”

He pointed out that this trend has not been limited to gold, and cited the December U.S. trade balance—and the near three-year high deficit of $98.4 billion—as proof that “everyone is rushing material into the States.”

While gold historically thrives when other assets perform badly, Ash said that the seeming contradiction of all-time-high gold prices and a booming stock market indicated that there is “a lot of money around looking for a home, and a lot of anxiety around those [stock market] highs.”

Recent analysis from Dutch banking and financial services group ING also pointed to Trump’s tariffs, as well as the retaliatory measures from Beijing, as contributing to gold’s most recent increase.

“Despite the US coming to a deal with Canada and Mexico, the uncertainty over trade and tariffs will continue to buoy gold prices,” ING Commodities Strategist Ewa Manthey wrote. “If trade tensions intensify and we see more retaliatory measures, safe-haven demand for gold will continue.”

“The imposition of tariffs would be unlawful and economically counterproductive, especially given the deeply integrated production chains the EU and U.S. established through transatlantic trade and investment,” the European Commission said on Monday, following Trump’s announcement of the universal tariff on steel and aluminum. “Tariffs are essentially taxes. By imposing tariffs, the U.S. would be taxing its own citizens, raising costs for business, and fueling inflation.”

What Happens Next?

Trump’s tariffs on Canada and Mexico are currently on hold, after agreements were struck on additional border security measures and commitments against drug trafficking.

No country-specific exemptions have so far been announced for the new tariffs on steel and aluminum, which are set to come into effect on March 12.

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