Gold surges 1.2% as Trump’s tariff threats trigger safe-haven rush; central bank demand, ETF inflows and falling equities add momentum.
March 28, 2025: Gold prices soared to fresh record highs on Thursday, March 27, as global market anxiety spiked following US President Donald Trump’s announcement of sweeping new auto tariffs.
Spot gold rose 1.2% to $3,057.12 per ounce, after briefly touching an all-time high of $3,059.30. US gold futures surged 1.5% to $3,069.10, following a record $3,070.90 earlier in the session.
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This marks the 17th record high for gold in 2025, as investors continue flocking to the yellow metal amid growing fears of a global trade war and volatile equity markets.
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Silver and Other Metals Surge Too
- Spot silver gained 1.8% to $34.30, its highest level since October 2024.
- Platinum rose 1% to $984.32.
- Palladium increased 1.3% to $980.25.
📈 What’s Driving the Rally in Gold?
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- Tariff-Driven Safe-Haven Demand
The key catalyst was safe-haven buying, triggered by Trump’s aggressive trade move: a 25% tariff on imported vehicles, prompting retaliatory threats from countries like Canada and France. - Stock Market Rout
Global equity markets dropped sharply, particularly automotive stocks. Investors turned to gold as a hedge against the market selloff. - ETF and Central Bank Inflows
Experts cited robust central bank gold purchases and rising demand from exchange-traded funds (ETFs) as strong tailwinds for bullion. - Lower Interest Rates, Weaker Dollar
Gold’s appeal also remains high in a low-interest rate environment. The US dollar index dropped 0.2% to 104.43, while the euro climbed 0.24% to $1.0777, making gold more attractive to global investors.
🧐 What’s Next for Gold?
Market analysts believe further upside is possible, depending on key US economic indicators.
Goldman Sachs has upgraded its 2025 year-end gold forecast to $3,300 per ounce, citing sustained demand from central banks and ETF investors
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