Gold prices surged in the international market shortly after U.S. President Donald Trump announced a new tariff plan. According to a Reuters report, the announcement led to an immediate increase in gold prices.
On April 2, at around 4 PM local time in Washington, President Trump unveiled the new tariff policy during a press conference at the White House. He stated that his administration has imposed export tariffs on all countries exporting goods to the United States. The tariff rates vary from a minimum of 10% to a maximum of 46%, depending on the country.
Reuters reported that within an hour of the announcement, the price of gold in the international market reached $3,129.46 per ounce (28.35 grams), reflecting a 0.6% increase.
Tai Wong, a U.S.-based gold trader, commented that the new tariff plan was “more aggressive than expected.” He predicted that if the policy is implemented, gold sales will increase while the value of the U.S. dollar may decline.
He further speculated that gold prices could soon reach $3,200 per ounce. “There are many unanswered questions regarding this tariff policy. If these issues remain unresolved, market instability is likely in the short term,” Wong told Reuters.
Since the COVID-19 pandemic, fluctuating dollar values have driven up global demand for gold as a stable investment. Central banks worldwide are the largest buyers of gold, and many investors are now preferring gold over the U.S. dollar as a secure asset.