Gold prices moved higher in Asian trading on Thursday after President Donald Trump announced a 25% tariff on all automobile imports, set to begin April 2. The news shook global markets, sending both U.S. and Asian stocks lower and boosting demand for safe haven assets like gold.
Investor flight to safety
The risk-off reaction drove spot gold up 0.4% to $3,032.21 an ounce, while gold futures for May delivery rose 0.5% to $3,067.42. While gold faced some profit-taking earlier in the week, it remains near record highs as traders respond to growing uncertainty over U.S. trade policies.
Goldman Sachs raises gold outlook
Adding to the bullish sentiment, Goldman Sachs increased its 2025 price target for gold, citing continued central bank buying and growing interest in gold-backed exchange-traded funds (ETFs). These factors are expected to keep gold supported even amid market volatility.
Global tensions fuel market jitters
Trump’s upcoming tariffs won’t just hit auto imports—they’re expected to affect up to 15 major trading partners, along with potential duties on commodities, semiconductors, and pharmaceuticals. Countries including Europe, China, Canada, and Mexico have already pushed back, raising the risk of a broader trade war. In this climate, gold continues to attract investors looking for stability.