READ: How Will Trump’s Tariffs Affect The Price of Gold .

As Gold rises to new record highs, we look at what Trump’s Tariffs and current trade wars will mean for the price of gold as an investment.

Donald Trump’s tariffs and the resulting trade wars, particularly with China, have significant implications for gold as an investment. Tariffs typically introduce economic uncertainty and disrupt global trade flows, which can lead to market volatility and investor anxiety. This environment historically favours gold, which is considered a “safe-haven” asset. When geopolitical tensions rise or economic outlooks appear unstable, investors often flock to gold to preserve value and wealth.

Trump’s trade policies, including tariffs on steel, aluminium, and a wide array of Chinese goods, recently contributed to heightened tensions and fears of retaliatory measures. These dynamics can weaken investor confidence in global economic growth, potentially leading to currency fluctuations—especially a weakening U.S. dollar. Since gold is priced in dollars, a weaker dollar makes gold cheaper for foreign buyers, often pushing prices higher.

Additionally, trade wars can lead to inflation, as tariffs make imported goods more expensive. Gold is commonly viewed as a hedge against inflation, so rising consumer prices might boost its appeal. Uncertainty around supply chains and global manufacturing adds further instability, which again supports gold’s traditional role in protecting wealth.

However, there are counterforces to consider. If tariffs lead to reduced economic activity and central banks respond by raising interest rates to combat inflation, higher yields on bonds might compete with gold, which does not yield interest. Still, in periods of sharp or prolonged trade tension, gold’s non-correlated nature to equities makes it an attractive diversification tool.

In summary, Trump’s tariffs and ongoing trade conflicts tend to support higher gold prices due to increased economic uncertainty, potential inflation, and currency volatility. For investors, gold may become more appealing as a defensive asset in a time of shifting trade policies and geopolitical unpredictability.

It’s never too late to start buying gold. It is a commodity that has been valuable for thousands of years and one that should continue in this vein.

Core Bullion Traders are 100% Irish owned and operate from a high-security facility in Dublin city centre.  We are happy to meet our clients both existing and prospective, in our offices (by appointment) at any stage.

We only deal with LBMA Approved & Member Refineries and we are Officially Authorised distributors for The Dublin Assay Office bullion bars and The Perth Mint Certificate Program.  We are quality assured and accredited by The International Trade Council (ITC).

Contact us today if you would like to know more.  We look forward to dealing with you at Core Bullion Traders.

Nigel Doolin is Head of Trading at Core Bullion Traders – he can be contacted directly at: nigel@corebulliontraders.ie or Tel: +353 (0)1 447 5975

Disclaimer &  Copyright 2024

Although every effort has been made to undertake this work with care and diligence, Core Bullion Traders do not guarantee the accuracy of any forecasts or assumptions. Nothing contained in this presentation constitutes an offer to buy or sell securities or commodities and nor does it constitute advice in relation to the buying or selling of investments. It is published only for informational purposes. Core Bullion Traders does not accept responsibility for any losses or damages arising directly or indirectly from the use of this presentation or data.