Insignia Consultants | Gold bulls lock in on glittering milestone; $3,000/oz in sight
Gold bulls lock in on glittering milestone; $3,000/oz in sight
Feb 10 (Reuters) - U.S. President Donald Trump's latest tariff threats have ignited another gold rush, propelling the safe-haven metal to new heights and bringing the glittering $3,000 milestone into view.
Spot gold climbed to a record $2,911.30 a troy ounce on Monday - its seventh record peak to date in 2025. Prices are already up nearly 11% so far this year after a staggering 27% gain in 2024.
Trump said on Sunday he will introduce new 25% tariffs on all steel and aluminium imports into the U.S., adding that he will announce reciprocal tariffs, applying them to all countries and matching the tariff rates levied by each country.
"Gold is very clearly targeting the $3,000 level and the market is incredibly strong, almost relentless. Now its only a question of when it will scale the level and not if it will," independent analyst Ross Norman said.
"One should expect to see retracement on profit-taking, but we never do, which reflects that the underlying momentum is very very powerful."
The tariff plans are broadly viewed as inflationary and capable of sparking trade wars, thereby increasing the demand for safe-haven assets like bullion, traditionally regarded as a hedge against inflation and geopolitical instability.
