Gold hovers near record highs as trade risks

27 Mart 2025

Gold hovers near record highs as trade and geopolitical risks mount

Market comment on behalf of Tito Lakopa – Commercial Director at FlowCommunity

Gold prices hovered near record highs on Thursday as mounting trade tensions and geopolitical instability fueled investor demand for safe-haven assets. On Wednesday, US President Donald Trump announced a 25% tariff on imported cars and light trucks, set to begin next week. Concerns about slower US growth has reinforced a bullish outlook for the precious metal.

Geopolitical developments are also playing a significant role. Escalating tensions in the Middle East, following the collapse of a fragile ceasefire, have intensified global risk aversion. Meanwhile, in Eastern Europe, although recent negotiations raised hopes for a ceasefire between Russia and Ukraine, Russia’s conditional stance and ongoing attacks have diminished the prospects of a resolution. This high-tension environment reinforces the demand for safe-haven assets, potentially driving gold toward new record highs.

On the macroeconomic front, US economic expectations could also drive the market as weak growth could boost gold prices.

 

Zaid Barem / ymm