Gold Approaching $3,000 After Trump Tariffs Announcement
By Stefan J. Bos, Chief International Correspondent Worthy News
NEW YORK (Worthy News) – Gold moved to $2,900 per ounce, and market analysts said the next stop could be $3,000 as fears of a trade war fueled a dash for safe assets.
U.S. President Donald J. Trump announced 25 percent tariffs on all steel and aluminum imports into the U.S. on Monday that would affect “everybody,” including its largest trading partners, Canada and Mexico, in another significant escalation of his trade policy overhaul.
Trump’s pre-announcement came as China’s retaliatory tariffs, announced last week, came into effect.
Yet stock markets in Europe were higher, and in New York later in the day, investors apparently remained confident in the deal-maker-in-chief’s economic abilities.
The S&P 500 index of America’s top companies climbed 0.7 percent after a losing week marked by market worries about how potential tariffs could push up inflation and threaten the economy.
The Dow Jones Industrial Average added 167 points or 0.4 percent, and the technology-heavy Nasdaq composite index rallied 1 percent, led by Nvidia and other Big Tech stocks.
The bond market also remained relatively firm, with Treasury yields making only modest moves after Trump announced over the weekend that he would impose 25 percent tariffs on all steel and aluminum imports and other import duties later in the week.
Amid the turmoil, gold breaking $3,000, which would only require a less than 3 percent rally from Monday’s prices, would be the latest milestone for a roaring 2020s for gold.
The precious metal only crossed $1,000 for the first time during 2008’s great financial crisis and $2,000 for the first time during 2020’s COVID-19 pandemic.
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