Trump Tariffs Rally Gold & Silver

The gold market experienced significant gains this week, driven by major geopolitical and economic developments. The primary catalyst was President Trump’s announcement of new tariffs, imposing a 25% duty on imports from Canada and Mexico and a 10% levy on Chinese imports.

Although the tariffs on Mexico and Canada were temporarily paused for 30 days, the announcements unsettled investors, pushing gold prices to record highs of USD $2,844/oz, with silver following suit, now trading above USD $32/oz. The move revived fears of a global trade war, prompting investors to seek refuge in gold as a safe-haven asset.

Meanwhile, the U.S. dollar strengthened in response, as investors also sought stability in the American currency. A stronger dollar weighs on gold by making it more expensive for international buyers, but gold’s rally continued despite a stronger dollar due to rising economic uncertainty.

Supply dynamics also played a role in market movements. Global bullion banks shifted large quantities of gold from Asian hubs such as Dubai and Hong Kong to the U.S., capitalizing on arbitrage opportunities as U.S. gold futures traded at a premium compared to global spot prices.

As geopolitical tensions and economic policy shifts continue, some analysts suggest that gold could test $3,000 per ounce by the end of the quarter, especially if market volatility persists. Silver could end up above $36/oz as well in that case.