Gold: The Ultimate Safe Haven During Trade Tariffs Chaos Pushing Costs to Record Levels

Gold surged to a historic high, surpassing $3,200 an ounce, as worries about the effect of tariffs on the global economy drove investors towards this safe haven.

The precious metal increased by up to 1.4% during early Asian trading on Friday, reaching a price of $3,219.48, which exceeded the previous record set on Thursday when it closed over 3% higher for the second consecutive day.

Read: Gold rises after tariff turmoil triggers largest gain in 18 months

This week’s events have underscored gold’s reputation as a haven, as President Donald Trump’s inconsistent statements regarding his tariff policy led to frantic sell-offs in US stocks, bonds, and the dollar, with concerns of a global recession weighing heavily on Wall Street. Uncertainties persisted even after his announcement of a 90-day pause on higher tariffs affecting numerous trading partners, with duties on all Chinese imports now at least 145%.

“Gold is currently the safest investment in the market,” remarked Liu Yuxuan, a researcher specializing in precious metals at Guotai Jun’an Futures Co in Shanghai. “The unprecedented trade tensions have intensified distrust towards the US dollar, leading to increased demand for alternative safe-haven assets,” she added.

Read: Gold climbs as trade instability impacts the dollar and treasuries

There are growing doubts regarding the timely completion of trade discussions ahead of the next 90-day deadline, despite comments from White House Economic Council Director Kevin Hassett, who stated that the US is “well advanced” in talks with its economic partners.

Gold’s more than 20% rise this year has also been fueled by purchases from central banks and expectations of further monetary easing from the Federal Reserve. Data released on Thursday indicated that underlying US inflation moderated broadly in March, with traders now anticipating three interest-rate cuts by the end of the year, possibly a fourth. Lower interest rates typically favor gold, which does not generate interest.

Read: Shiny gold price adds R19.38bn to national reserves

As of 9:51 a.m. in Singapore, spot gold was up 1.1% to $3,212.41 an ounce, heading for a weekly gain of nearly 6%. The Bloomberg Dollar Spot Index has fallen for the fourth consecutive day. Silver dipped, while platinum and palladium saw slight increases.

© 2025 Bloomberg

Stay updated with Moneyweb’s comprehensive finance and business news on WhatsApp here.