FX.co ★ Gold Hits Another Record

Gold has surged to an unprecedented $3,164 per ounce, reflecting heightened risk aversion following President Trump's recent tariff announcement. The President introduced a baseline tariff of 10% on imports from all countries, with increased rates targeting nations with significant trade surpluses with the U.S. These include a 34% tariff on Chinese goods, 20% on European Union imports, and 24% on products from Japan, alongside a 25% tariff on foreign-manufactured vehicles. In his address, Trump showcased a comparison chart of the tariffs these countries impose on U.S. imports, indicating that reciprocal tariffs would soon be implemented. Trump asserted that these measures are designed to stimulate domestic manufacturing and alleviate trade deficits. Additionally, gold's value was buoyed by the anticipation of interest rate cuts, continued central bank acquisitions, and robust demand for gold-backed exchange-traded funds (ETFs), with China’s ETF notably increasing by 233,000 ounces. Meanwhile, disappointing U.S. employment figures and an unfavorable manufacturing report have redirected investor attention to the upcoming nonfarm payroll data scheduled for release on Friday, which may provide further clarity on the Federal Reserve's future policy direction.