The price of gold has climbed near $3,000 an ounce, due to increased purchases by central banks and investor concerns about global economic growth following announcements of new US tariffs.
In the physical market, the price of an ounce (28 grams) of gold was at $2,943 around noon, up 0.3 percent from yesterday’s close. It briefly hit a new record high of $2,946, the ninth time this year that a new high has been reached since the beginning of the year.
In the US futures market, gold traded at a price 0.4 percent higher, at $2,961. According to calculations by the World Gold Council (WGC), the price of gold rose over 28 percent last year due to strong demand from central banks and investors during periods of high geopolitical tensions, reports DLYnews.
Central banks have continued to fill reserves in 2024, increasing the pace of purchases in October, and are expected to continue this trend in 2025, according to WGC estimates in mid-December.
Demand for gold investments also increased due to geopolitical risks and strong fluctuations in regional financial markets. Investors resumed buying in the third quarter of the year after central banks began cutting key interest rates, Reuters writes.
Earlier this year, nervousness increased after US President Donald Trump’s statements on tariffs. Yesterday, Trump said he plans to impose tariffs of about 25 percent on car imports, as well as similar tariffs on semiconductors and pharmaceutical products.
Traders fear that these tariffs could lead to a trade war and damage the global economy.
“It appears that the gold price rally has been fueled by Trump’s statements on tariffs on cars and medicines, which could pave the way for a move to the $3,000 level,” said Zaid Wanda, market analyst at OANDA.
Since returning to the White House, Trump has already imposed a 10 percent tariff on imports from China and a 25 percent tariff on steel and aluminum imports from various countries around the world. “I think central banks will continue to buy gold and diversify their reserves with gold, thus supporting its price increase,” said UBS analyst Giovanni Staunovo.
Also, the price of silver, which is used in electrical components, rose by 0.4 percent, reaching $32.99 per ounce. Meanwhile, platinum, which is used in vehicle catalytic converters, fell by 0.6 percent, trading at $981.56. While the price of palladium (a rare and shiny silver-white metal) remained almost unchanged, at $987.75. /DLYnews/
