Gold surges as tariff threats increase demand
Gold took a breather on Tuesday after a rapid run of 10% per year. But Wall Street analysts look even more upward about the precious metal given Recent tariff announcements And the threat of escalation Trade wars.
Tuesday, gold futures (gc = f) It was pulled back after jumping to the past $2,960 over the past 24 hours in response to President Donald Trump’s tariff plans on steel and aluminum imports.
Solita Marcelli, America’s chief investment officer at UBS Global Wealth Management, said Tuesday.
Macelli said, “We recently raised our gold forecast to USD 3,000/Oz in 2025 as we believe that metals will continue to support amidst fragile risk sentiment and strong demand.”
On Monday, the president signed a signing that he would raise the obligation to raise his steel and aluminum import duties to 25% from March 12th. The European Union has it. I vowed to respond Its own measures raise concerns about the trade war.
Meanwhile, this week, Trump is expected to announce a retaliatory tariff plan against countries that impose taxes on US goods.
“In addition to tariff uncertainty and geopolitical tensions, further speed cuts from the Federal Reserve should also boost the gold investment case later this year,” said UBS’s Marcelli.
Investors print Wednesday’s monthly Consumer Price Index (CPI) for clues on how the Federal Reserve will advance interest rate cuts after policymakers suspend cuts during a January meeting Turn to. Investors expect the Fed will not be cut again until the second quarter of this year.
Given Gold’s driving this year, analysts warn of overscaling in the short term if the tariff threat doesn’t come into effect.
“While products like gold can act as diversifying devices, recent gatherings create the risk of set-offs in case tariff uncertainty fades,” says Goldman Sachs announcer The list is written on Monday.
Central bank purchases and ETF inflows have driven the rise of gold meteors over the past year.
Gold demand in 2024 Surged to new records According to a recent World Gold Council report, as central banks accelerated purchases in the fourth quarter of last year.
Meanwhile, recently China 10 approved insurance companies It further promotes the possibility of market inflows to buy gold as part of the pilot program.
“The insurance company’s green light in China will recharge demand,” said Nigel Green, CEO of Global Financial Advisory Devere Group.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her with X @ines_ferre.