The price of %Gold bullion is up nearly 2% as investors worldwide assess the potential impacts of U.S. tariffs on imported goods from Canada, Mexico and China.
Gold is currently trading at $2,933.60 U.S. an ounce and near an all-time high as U.S. equity markets selloff on news of the U.S. trade tariffs and investors flee to safe haven assets.
The price of gold has gained 10% so far this year even as the benchmark S&P 500 stock index slides into the red and is down about 1% year to date.
Gold’s price last hit a record high of $2,956.15 U.S. on Feb. 24 of this year, and many analysts expect it to rise above $3,000 U.S. an ounce within months if not weeks.
The continued rally in gold comes as U.S. President Donald Trump imposes 25% tariffs on imports from Canada and Mexico, and 20% duties on goods from China.
All three countries have vowed retaliatory tariffs on U.S. goods, raising the prospect of a global trade war that could do economic damage to each country involved.
Along with China, Canada and Mexico account for more than 40% of total U.S. imports.
The prospect of a trade war has led investors to flee stocks and other risk assets such as cryptocurrencies in favor of the relative safety of gold and bonds.
Also boosting demand for gold bullion are ongoing geopolitical uncertainties in the Middle East and Europe.
Late on March 3, President Trump announced that the U.S. is halting all military aid to Ukraine as that country continues to fight an incursion by Russia’s military.
Central banks around the world continue to add to their gold reserves, contributing to higher prices for bullion.
