Gold (XAU/USD) prices surged to new highs this week but then tumbled as Trump’s latest trade policy left investors scrambling for positions.
The metal peaked at $2,942 on Tuesday after Trump signed orders slapping 25% tariffs on U.S. steel and aluminum imports. Traders piled into gold – their go-to backup when markets wobble.
But the frenzy fizzled after Trump’s Thursday pivot, when he floated plans to hash out deals with trading partners one by one rather than hitting them all at once with tariffs.
Friday brought more twists. Gold ticked up during European morning trading, then sank to $2,877.40 to end the day 1.5% down. Futures took a similar hit.
Traders are eyeing gold’s sweet spot with inflation – tariffs tend to push prices up across the board, making gold appetising as the dollar loses its punch.
Gold investors remain bullish, with most analysts calling for $3,500 this year.
Uncertainty is set to continue with Trump’s ongoing tariff threats. Gold prices will be sensitive to his rhetoric, so expect further volatility.
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