Gold is nearing a record high as Trump's tariff threats weaken the dollar

Trump's comments have increased market volatility, leading to a three-week low for the dollar index

We may earn a commission from links on this page.
Image for article titled Gold is nearing a record high as Trump's tariff threats weaken the dollar
Image: Mario Tama (Getty Images)

This story incorporates reporting from btimesonline, MSN and Reuters.

Gold prices surged, nearing record levels this week. Trade policy uncertainty and a weakening U.S. dollar have prompted investors to flock to safe-haven assets. On Wednesday, U.S. gold futures closed at $2,770.90, indicating consistent interest in the precious metal.

The surge follows President Donald Trump’s reiteration of planned tariffs on imports from various countries, including China. Trump’s comments have increased market volatility. This led to a three-week low for the dollar index, which measures the U.S. dollar’s strength against other major currencies. Gold prices are gaining strength from the dollar’s decline.

Advertisement

Technical analysis shows support levels for gold at $2,750, assisted by simple moving averages around $2,648. Analysts note these levels provide stability, possibly allowing gold to maintain its upward trajectory. The situation reflects broader market movements in response to geopolitical factors.

Advertisement

Investors are closely monitoring the trade discussions, as further developments could influence gold’s performance. While gold’s rise suggests confidence in its role as a safe haven, the ongoing trade negotiations might present additional market shifts.

Advertisement

Quartz Intelligence Newsroom uses generative artificial intelligence to report on business trends. This is the first phase of an experimental new version of reporting. While we strive for accuracy and timeliness, due to the experimental nature of this technology we cannot guarantee that we’ll always be successful in that regard. If you see errors in this article, please let us know at qi@qz.com.