Gold prices rise amid tariff war: investors flee risk
Gold is gaining value amid escalating trade conflicts following the U.S. implementation of new auto tariffs, increasing investor concerns about inflation and recession.
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On March 27, gold prices rose to $3,030.47 per ounce in response to U.S. President Donald Trump’s announcement of a 25% tariff on imported cars and pickups, according to Equityworld Futures Portal News.
The new measures take effect next week and raise concerns about rising global tensions. The world’s largest economies are expected to respond with retaliatory tariffs as soon as April 2.
Investors fear an economic slowdown and inflation, which has boosted demand for gold as a safe-haven asset.
In this context, Goldman Sachs has raised its gold price forecast to $3,300 per ounce by the end of 2025. The market is also supported by active purchases from central banks and growing ETF investments.
It’s worth recalling that Donald Trump announced a 25% tariff on the import of cars and auto parts into the U.S., as reported in a post by the White House on social media platform X.
The measure takes effect on April 2, initially targeting vehicles, followed by parts. According to the former president, this will create jobs and strengthen American industry.
However, analysts predict rising car prices, supply chain disruptions, and worsening relations with trade partners.
Major automakers, including Tesla, will also feel the impact. Mexico, Canada, Japan, and Germany are among the top suppliers. Brands with overseas manufacturing, including General Motors and Stellantis, are especially vulnerable.
Earlier, it was reported that Swiss bank UBS raised its gold forecast, expecting the price to reach $3,200 per ounce. According to analysts, rising demand for gold as a safe-haven asset amid economic uncertainty will drive growth.