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| Trump Tariffs: Gold hits fresh record high over trade war impact fears | |
| (32 minutes later) | |
| Gold has jumped to a fresh record high as investors fret over the impact of the trade war between the US and China. | Gold has jumped to a fresh record high as investors fret over the impact of the trade war between the US and China. |
| Spot gold touched $3,357.40 (£2,540) per ounce on Wednesday, before dipping from its peak. It has risen by around 30% since the start of the year. | |
| The latest move comes after the head of US central bank said President Donald Trump's tariff policies are likely to mean slower growth and higher prices. | The latest move comes after the head of US central bank said President Donald Trump's tariff policies are likely to mean slower growth and higher prices. |
| The precious metal is viewed as a safer asset for investors during times of economic uncertainty. | The precious metal is viewed as a safer asset for investors during times of economic uncertainty. |
| In remarks for the Economic Club of Chicago on Wednesday, Federal Reserve Chair Jerome Powell said the higher-than-expected tariffs announced in recent weeks are likely to mean US economic growth will slow and rising prices for consumers. | |
| The comments come after a period of turmoil on global financial markets as investors reacted to the new import taxes coming into effect and the escalating trade war between the US and China. | |
| Gold is in "full lifeboat mode" as it has become "the most crowded trade on the planet," Stephen Innes from the SPI Asset Management firm said. | Gold is in "full lifeboat mode" as it has become "the most crowded trade on the planet," Stephen Innes from the SPI Asset Management firm said. |
| "The dollar is stumbling under the weight of trade-policy whiplash, and portfolio managers have lost faith in anything that involves political discretion," he added. | "The dollar is stumbling under the weight of trade-policy whiplash, and portfolio managers have lost faith in anything that involves political discretion," he added. |
| Analysts have compared this year's gold rally to the Iranian Revolution more than four decades ago, when prices jumped by almost 120% from November 1979 to January 1980. | |
| Gold crossed $3,000 an ounce for the first time last month as uncertainty over the impact of a global trade war set in. | Gold crossed $3,000 an ounce for the first time last month as uncertainty over the impact of a global trade war set in. |
| Jesper Koll from advisory firm Monex Group said investors have flocked to gold as "a trust hedge against both inflation and government recklessness". | Jesper Koll from advisory firm Monex Group said investors have flocked to gold as "a trust hedge against both inflation and government recklessness". |
| "Everyone is looking for 'real' assets. It's increasingly clear that Team Trump's 'move fast and break things' approach to policy making will not change," he added. | "Everyone is looking for 'real' assets. It's increasingly clear that Team Trump's 'move fast and break things' approach to policy making will not change," he added. |
| The introduction of tariffs by the Trump administration, which are taxes charged on businesses importing goods from overseas, has fuelled fears of inflation, which has driven investors to so-called safe haven assets like gold. | The introduction of tariffs by the Trump administration, which are taxes charged on businesses importing goods from overseas, has fuelled fears of inflation, which has driven investors to so-called safe haven assets like gold. |
| Trump has put taxes of 145% on China since he returned to the White House in January, and China has retaliated with a 125% tariff on US imports. | Trump has put taxes of 145% on China since he returned to the White House in January, and China has retaliated with a 125% tariff on US imports. |
| There is also uncertainty about whether sweeping US tariffs on a host of other countries will go into effect, after being paused for 90 days. | There is also uncertainty about whether sweeping US tariffs on a host of other countries will go into effect, after being paused for 90 days. |
| The Trump administration has said the measures will bring manufacturing back to the US, create jobs for American workers and generate billions of dollars of tax revenues. | |