Gold Reaches New Heights Amid Trade Tensions

In a dramatic turn of events, gold prices surged to an unprecedented all-time high on Monday. This remarkable increase comes in the wake of President Donald Trump's announcement of imposing hefty tariffs on imports from key US trading partners, including Mexico, Canada, and China. The move has sparked widespread concern over the potential for a global trade war, driving investors towards the safety of gold.

Impact of Tariffs on Global Markets

President Trump's decision to impose a 25% tariff on Mexican and Canadian imports, alongside a 10% tariff on Chinese goods, has sent shockwaves through the global markets. The president's warning that these tariffs could escalate if the affected countries retaliate has only added to the uncertainty. Furthermore, the threat of tariffs against the European Union has heightened fears of a full-blown trade war, prompting investors to seek refuge in precious metals.

Market Reactions and Precious Metals Prices

As of 9:43 am ET, gold prices had climbed by 0.68% to $2,818.46 per ounce, marking a historic high. Silver also saw a modest increase of 0.13%, trading at $31.34 per ounce. However, platinum experienced a significant drop of 2.13%, selling for $963.97 per ounce, while palladium rose by 1.72% to $1,004.34 per ounce. These fluctuations underscore the volatile nature of the current market, driven by trade war anxieties.