Gold Climbs as Investors Seek Safety Amid Tariff Flip-Flop

Yvonne Yue Li

Tue, Mar 11, 2025, 9:37 AM 2 min read

(Bloomberg) -- Gold climbed — regaining a tiny foothold supra $2,900 an ounce — arsenic traders sought information successful bullion, with President Donald Trump’s latest tariff announcement intensifying interest that a planetary commercialized warfare could hazard tilting the US system into a recession.

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Trump said helium was expanding the alloy and aluminum tariff connected Canadian goods to 50% to retaliate against Ontario’s determination to spot a levy connected energy sent to the US, ramping up his combat with the US’s largest trading partner. US equities pushed little and the dollar fell, helping assistance bullion arsenic overmuch arsenic 1.2% higher.

Tariff headlines successful caller weeks person created ample swings successful equities and kept investors connected edge. A slew of tepid economical reports successful the US person besides sparked fears of stagflation, wherever there’s upside hazard for ostentation arsenic good arsenic downside hazard for economical growth. Altogether, traders were progressively convinced that a trade-induced maturation slowdown volition pb the Federal Reserve to chopped involvement rates aggregate times this year.

“That’s going to beryllium a tailwind for gold,” said Stephen Jury, planetary commodity strategist astatine JPMorgan Private Bank, successful an interview. Increasing speech of the anticipation of a recession successful the US volition apt pb to an situation wherever rates and the dollar whitethorn caput lower, according to Jury. “That’s going to acceptable up a precise constructive script for a higher golden terms successful the 2nd fractional of this year.”

Jury sees immoderate dip successful golden prices a buying accidental for investors to diversify from a accepted premix of stocks and bonds.

Former Treasury Secretary Lawrence Summers said Tuesday there’s astir a 50-50 likelihood of the US tipping into a recession this twelvemonth owed to a scope of argumentation steps from the Trump medication that are undermining confidence.

Gold has precocious 11% this year, hitting successive records. The rally has been driven by fears astir the disruption caused by the Trump administration, central-bank buying and speculation the Fed whitethorn chopped involvement rates further. Lower borrowing costs thin to payment non-yielding gold.

Spot golden gained 0.9% astatine $2,916.17 an ounce astatine 12:16 p.m. successful New York. The Bloomberg Dollar Spot Index slid 0.3%. Silver, palladium and platinum each advanced.

--With assistance from Jack Ryan, Sybilla Gross and Preeti Soni.