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President Donald Trump has proposed tariffs against several countries, including Mexico, Canada, and China, and recently suggested 25% tariffs on all aluminum and steel imports to the United States. While analysts are still uncertain about the economic impact of this sweeping trade strategy, one asset still stands to outperform: gold (GC=F).
Yahoo Finance Reporter Ines Ferré explores the factors driving commodities demand higher and delves into how gold could benefit from the ongoing geopolitical and trade tensions.
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
This post was written by Angel Smith
Gold is closing in on $3,000 and and that's an ounce as trade tensions drive demand for the asset higher. The last time the US imposed widespread trade duties under Trump in 2018, gold prices surged nearly 50% over the next two years as investors sought refuge from the economic uncertainty and inflation risks. Joining us now, we've got Inez Ferre with a deeper dive on this. Hey, Inez.
Hey, Brad. Yeah, and we if we take a look at gold prices right now, as you just mentioned hitting record highs. I do want to note the threshold of 2900 per ounce. So this is the first time that we're seeing gold trading above these levels, and all of this has to do with tariff uncertainty, uh central banks that continue to buy gold. But we have really seen a rally in gold in recent weeks. And now we have Wall Street also weighing in still bullish on gold. In fact, this rally has been faster than what some analysts had been anticipating, at least for their price targets, because you have, for example, uh Goldman Sachs that was forecasting $3,000 per ounce for gold by the second quarter of 2026. They're seeing an upside risk if this continuation with US policy uncertainty continues. Also, though, they do see that prices could fall if the trade tensions fade. You also have JP Morgan that recently put out a note as well, uh saying that if equities were to fall, then you could see a dip in gold prices. But for the medium term, they continue to be bullish on gold. We have seen gold demand at all-time highs last year, central banks really driving that gold demand. You also had inflows into ETFs. That is that is expected to continue. Look, if you continue to have these trade tensions, these tariffs, then you will continue to see this gold buying. That's what Wall Street's saying, as my colleague Jared Blickre says, tariffs are are protectionist, and gold is a protectionist safe haven, guys.
