The spot price of gold reached $3,357.40 (\u00a32,540) per ounce on Wednesday before retreating from its peak level. Since the start of the year, the value of gold has risen by about a third.<\/p>\n\n\n\n
The surge in prices followed comments from the U.S. central bank\u2019s chairman, who said that President Donald Trump\u2019s tariff policies are likely to slow economic growth, drive up prices, and increase the risk of unemployment.<\/p>\n\n\n\n
The precious metal is traditionally considered a safe haven for investors during periods of economic uncertainty.<\/p>\n\n\n\n
Speaking at the Economic Club of Chicago on Wednesday, Federal Reserve Chairman Jerome Powell stated that the higher-than-expected tariffs announced in recent weeks could slow U.S. economic growth and raise prices for consumers.<\/p>\n\n\n\n
Mr. Powell\u2019s statement came after a period of turmoil on global financial markets, triggered by the introduction of new import tariffs and the escalation of the trade war between the U.S. and China.<\/p>\n\n\n\n
Gold has entered “lifeboat mode,” becoming “the most crowded trade on the planet,” noted Stephen Innes, Head of Trading and Market Strategy at SPI Asset Management.<\/p>\n\n\n\n
“The dollar is stumbling under the weight of trade policy shocks, and portfolio managers have lost faith in anything involving political discretion,” he added.<\/p>\n\n\n\n
Analysts have compared this year\u2019s rise in gold prices to the period of the Iranian Revolution more than four decades ago, when prices surged nearly 120% from November 1979 to January 1980.<\/p>\n\n\n\n
Last month, gold crossed the $3,000-per-ounce mark for the first time amid rising uncertainty over the consequences of the global trade war.<\/p>\n\n\n\n
Jesper Koll of consultancy firm Monex Group noted that investors are flocking to gold as a “safe hedge against inflation and government recklessness.”<\/p>\n\n\n\n
“Everyone is seeking real assets. It\u2019s becoming increasingly clear that the Trump team\u2019s \u2018move fast and break things\u2019 approach to policymaking won\u2019t change,” he added.<\/p>\n\n\n\n
The Trump administration\u2019s introduction of tariffs \u2014 taxes on imported goods \u2014 has sparked fears of inflation and driven investors towards safe-haven assets like gold.<\/p>\n\n\n\n
Since returning to the White House in January, Trump has imposed tariffs of 145% on Chinese goods, while China retaliated with a 125% tariff on U.S. imports.<\/p>\n\n\n\n
Moreover, uncertainty remains over whether broad U.S. tariffs on imports from several other countries will take effect after a 90-day pause.<\/p>\n\n\n\n
The Trump administration claims that these measures will help bring manufacturing back to the U.S., create new jobs for American workers, and generate billions in tax revenues.<\/p>\n","protected":false},"featured_media":3872,"template":"","class_list":["post-3874","news-cu","type-news-cu","status-publish","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"\n