Gold Price Rises to Fresh Record as Trump Tariffs Trigger Haven Demand
Gold rose to a new all-time high amid a rush to safer assets after US President Donald Trump imposed tariffs on Canada, Mexico and China, while threatening to do the same against the European Union.

“We could envision a situation where inflation migrates higher, while the economy slows down as the auto sector grinds to a sudden halt, for example,” said Bart Melek, global head of commodity strategy at TD Securities. “Higher inflation and low rates, and the associated angst with the president’s imposition of tariffs, so uncertainty and risk are helping gold.”
The US on Saturday announced tariffs of 25% on goods from Canada and Mexico, and 10% on those from China, set to take effect Tuesday. Canadian energy imports will face a 10% levy. Ottawa unveiled 25% counter-tariffs on US goods, Mexico pledged retaliatory actions and Beijing issued a statement vowing “corresponding countermeasures.” Trump has also threatened tariffs against the EU, which said it would respond firmly.
“These tariffs create a strong tailwind for gold,” Bank of Montreal analysts wrote in a note. “Not only because of their inherent inflationary effects but also as the USA’s increasingly hawkish foreign policy may accelerate de-dollarization plans.”
Trade war fears have already jolted precious metals markets, with US prices of gold and silver surging above international benchmarks in recent weeks, causing dealers and traders to rush huge volumes of the metals into the US before any tariffs are imposed. The chaos has also led to a spike in lease rates for gold and silver — the return that holders of bullion in London’s vaults can get by loaning metal out on a short-term basis.
Spot gold rose 0.7% to $2,816.75 an ounce as of 12:14 p.m. in New York. The Bloomberg Dollar Spot Index rose 0.2%%, after jumping as much as 1.3% earlier. Silver gained, while platinum and palladium fell.