Key Data Points:1. Gold rose above $3,000 an ounce as President Donald Trump’s tariffs against major trade partners triggered deep uncertainty in financial markets.2. U.S. equity markets erased $5T in three weeks post-tariff announcements.3. Central bank gold holdings now equal 17% of global reserves, a 30-year high.Gold prices surged past $3,000 per ounce for the first time as escalating tariffs imposed by President Donald Trump disrupted global trade, driving investors toward safe-haven assets. Gold futures settled at a record $3,001.1 an ounce on Friday, marking a 13.6% increase this year. The surge coincides with a $5 trillion lost in U.S. stock markets over the past three weeks, fueled by trade tensions and economic uncertainty. A Bank of America survey found that 52% of global fund managers now consider gold the best hedge against a full-scale trade war. According to David Wilson, senior commodities strategist at BNP Paribas, “The Trump administration’s aggressive tariff policies and shifting global alliances have heightened economic and geopolitical risks, significantly boosting demand for gold.” This rally marks gold’s third most significant bull run in modern history, said Daniel Ghali, senior commodity strategist at TD Securities. He noted that while macroeconomic funds have driven the price surge, their ability to keep buying is not unlimited. However, broader market conditions suggest continued long-term support for gold. Adding further momentum, central banks have ramped up gold purchases to reduce reliance on the U.S. dollar and Treasurys. Since the 2022 Russian invasion of Ukraine, fears over potential asset freezes have led governments to diversify reserves. In January alone, central banks acquired 18 metric tons of gold, with China’s central bank continuing its buying spree for the third straight month. Last year, global central banks added 1,045 metric tons of gold to their reserves, marking the third consecutive year of purchases exceeding 1,000 tons, according to the World Gold Council.Stay updated with the latest India news, world news, and stock market updates on Elephants Finance.
Key Data Points:
1. Gold rose above $3,000 an ounce as President Donald Trump’s tariffs against major trade partners triggered deep uncertainty in financial markets.
2. U.S. equity markets erased $5T in three weeks post-tariff announcements.
3. Central bank gold holdings now equal 17% of global reserves, a 30-year high.
Gold prices surged past $3,000 per ounce for the first time as escalating tariffs imposed by President Donald Trump disrupted global trade, driving investors toward safe-haven assets.
Gold futures settled at a record $3,001.1 an ounce on Friday, marking a 13.6% increase this year. The surge coincides with a $5 trillion lost in U.S. stock markets over the past three weeks, fueled by trade tensions and economic uncertainty.
A Bank of America survey found that 52% of global fund managers now consider gold the best hedge against a full-scale trade war. According to David Wilson, senior commodities strategist at BNP Paribas, “The Trump administration’s aggressive tariff policies and shifting global alliances have heightened economic and geopolitical risks, significantly boosting demand for gold.”
This rally marks gold’s third most significant bull run in modern history, said Daniel Ghali, senior commodity strategist at TD Securities. He noted that while macroeconomic funds have driven the price surge, their ability to keep buying is not unlimited. However, broader market conditions suggest continued long-term support for gold.
Adding further momentum, central banks have ramped up gold purchases to reduce reliance on the U.S. dollar and Treasurys. Since the 2022 Russian invasion of Ukraine, fears over potential asset freezes have led governments to diversify reserves. In January alone, central banks acquired 18 metric tons of gold, with China’s central bank continuing its buying spree for the third straight month.
Last year, global central banks added 1,045 metric tons of gold to their reserves, marking the third consecutive year of purchases exceeding 1,000 tons, according to
the World Gold Council.
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