Gold prices have surged to an unprecedented high, surpassing the $2,800 per ounce mark for the first time on Friday. Investors worldwide are flocking to the safe-haven asset in anticipation of impending tariffs by US President Donald Trump on the Chinese mainland, Mexico, and Canada this weekend.
According to data from gold.org, spot gold reached a new peak of $2,814.62 per ounce. This significant rise reflects growing investor concern over escalating trade tensions and their potential impact on the global economy.
The ripple effect of these anxieties was evident in the US stock market, which saw declines across major indexes on Friday. The Dow Jones Industrial Average fell 0.7 percent, the S&P 500 dropped by 0.5 percent, and the Nasdaq Composite Index decreased by 0.3 percent.
Meanwhile, the US dollar strengthened, with the dollar index—measuring the greenback against a basket of currencies including the yen and the euro—rising 0.31 percent to 108.42. A stronger dollar often impacts investment flows and commodity prices globally.
Oil prices also experienced an uptick. The US West Texas Intermediate crude advanced to $73.48 per barrel in late trading, up 1 percent, while Brent crude futures for April rose 0.7 percent to $76.54 a barrel in extended trading. This increase came after the Trump administration announced plans to decrease proposed tariffs on Canadian oil, providing some relief to markets concerned about potential supply disruptions.
The financial markets' movements underscore the heightened uncertainty surrounding international trade policies and their far-reaching effects. Investors and analysts worldwide are closely monitoring these developments, as the introduction of new tariffs could have significant implications for global trade dynamics and economic stability.
Reference(s):
cgtn.com
