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Gold (GC=F) is reaching a record high amid President Trump's upcoming tariffs. Morning Brief host Madison Mills breaks down gold's record rally.
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As investors flock to safe havens, one is outperforming them all, and it's gold. Gold rising to a record amid concerns about that widening trade war after President Donald Trump pushed ahead with US tariffs on all auto imports. This year alone, gold is up 17% with the rally fueled by central bank buying and investors seeking safety ahead of even more tariffs due out in the coming days. More gains could be had. Several major banks have raised their price targets for the precious metal, Goldman Sachs on Wednesday here, forecasting a $3,300 an ounce call by year end. And you can see here, we have gold moving to the upside today. I also want to mention 17 record highs, the single biggest number of record highs that the precious metal has had in any singular year. One of the things that's really interesting about gold as a safe haven play is that it can actually be seen as a competitive force to the likes of the US dollar. I mentioned that central bank buying. If we continue to see central banks around the world diversifying away from the US dollar as their reserve currency, and that lifts up the price of gold, that's good if you have gold. It's not necessarily good as an outlook for the US economy. Could that be a key risk to watch if we do see investors globally moving away from the US dollar? Of course, that is still viewed as a positive catalyst for gold.