Gold Prices Soar 2.1% to Record $3,244.15 on Tariff Fears

Gold prices have surged to an all-time high of over $3,200 per ounce, driven by concerns over the impact of tariffs on the global economy. This surge has enhanced gold's appeal as a safe-haven asset for investors. On Friday, gold prices rose by 2.1%, reaching $3,244.15 per ounce, surpassing the previous high set on Thursday.

The escalating trade tensions and the imposition of tariffs on imported goods have raised fears of broader economic repercussions. The price impact of tariffs is more extensive than many anticipate. Tariffs apply not only to final imported goods but also to intermediate goods, which are components used in the production of other goods. This broader application of tariffs could lead to increased costs across various sectors, further fueling inflationary pressures.

The tariffs imposed by the administration could push the inflation rate to as high as 4%. The unemployment rate could rise from the current 4.2% to between 4.5% and 5%. This pessimistic outlook comes as the financial markets grapple with the impact of extreme protectionist trade policies, which have been partially rolled back. The economic growth rate is expected to slow significantly from last year, potentially falling below 1%.

The surge in gold prices reflects investors' growing unease about the economic fallout from the tariff war. As concerns about global economic stability mount, gold's status as a safe-haven asset has become more pronounced. Investors are increasingly turning to gold as a hedge against the uncertainties and potential economic disruptions caused by the tariff disputes. The heightened demand for gold has driven its price to unprecedented levels, making it an attractive investment option in the current climate of economic uncertainty.