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Trump's Tariffs Spark Gold Rush Amidst Geopolitical Storm

Coin WorldTuesday, Feb 18, 2025 4:11 am ET

1min read

Gold prices have surged this year, driven by safe-haven demand and geopolitical uncertainties. The precious metal has gained nearly 10% in 2023, benefiting from President Trump's disruptive approach and potential tariff measures that could impact global trade and supply chains.

Gold's status as a top safe-haven asset has been solidified, making it an attractive tool for hedging against inflation. However, the risk of a strong US dollar persists, which could suppress gold demand if inflation rebounds and the Federal Reserve adopts a more cautious monetary policy easing stance.

The era of "Trump 2.0" is filled with uncertainty, and gold is expected to benefit from risk aversion and central bank purchases. However, the strength of the US dollar remains a significant risk factor for gold prices.

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