While Trump’s Liberation Day tariffs send shockwaves through equities, gold is on fire.
Gold futures surged to an all-time high of $3,177 per ounce early Tuesday before pulling back slightly — still up +18% YTD, compared to the S&P 500’s -4.3% slide.
What’s Driving the Surge?
“The recent surge has been almost exclusively driven by tariffs-related fears and uncertainty,” says Michael Widmer, head of metals research at Bank of America.
With Trump’s global tariff war escalating and recession odds rising, investors are scrambling into the ultimate “fear trade”: gold.
- Tariffs → inflation fears
- Inflation → rate paralysis
- Uncertainty → flight to safety
- Result → record gold prices
Gold = Safe Haven… With Risk
Gold shines in volatile times. But it’s not bulletproof.
“When it seems like the world is going to hell in a handbasket, gold usually appreciates,” says Lee Baker, CEO of Claris Financial.
Still, gold isn’t income-producing — no dividends, no yield. It’s a capital appreciation play, not a cash-flow one.
“If you’re just caught up in the buzz… it’s likely to lead to disappointment,” Baker warns.
What’s Next?
- BofA sees gold hitting $3,500/oz within 18 months
- Demand is rising globally — both retail and institutional
- Gold-backed ETFs are pulling in fresh inflows
- Crypto as a “digital safe haven” is losing relative steam
Investing Tip
Gold is booming, but it’s not for everyone. For those not keen on storing bars in safes, gold ETFs and precious metal funds offer exposure with less overhead.
But the bigger lesson?
Diversify. Tariff risk, stagflation fears, and geopolitical shocks all hit asset classes differently.
Gold’s parabolic move reflects not just inflation or tariffs, but fear itself. And in a market ruled by volatility, it’s back to basics: hard assets, low correlation, and risk-aware positioning.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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