Gold Price Approaching $3,000! Trump's Tariffs Panic Fuel Buying

Gold prices surged to a record high after U.S. President Donald Trump announced plans to impose tariffs on steel and aluminum imports on Monday, adding to the rising uncertainty in global financial markets. As of press time, gold was trading above $2900, closing in on the $3000 mark.

Gold is still in the best position, with almost no obstacles, said Richard Franulovich, an analyst at Westpac Banking Corporation, in a report. An intrinsically unpredictable and disruptive Trump, his tariff threats against allies and adversaries, and the looming threat of a 100% tariff on BRICS countries if they diversify away from the U.S. dollar all point to the increasing safe-haven appeal of gold.

Central banks around the world have once again become major buyers of gold. The People's Bank of China bought gold in January, marking the third consecutive month of expanding its gold reserves. Furthermore, China has started allowing its 10 largest insurance companies to allocate 1% of their assets for investments in gold and silver, which could bring in an additional $27.4 billion.