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Trump tariffs add polish to gold rally but full market impact yet to hit

Another precious metal, silver, broke from trend and fell on recession fears as its heavy industrial use makes it more vulnerable to a slowdown

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Mia Pei

Mia Pei

Published Wed, Apr 2, 2025 · 02:10 PM
    • BMI expects gold prices to range between US$3,000 and US$3,400 per ounce over the second and third quarters of 2025.
    • BMI expects gold prices to range between US$3,000 and US$3,400 per ounce over the second and third quarters of 2025. PHOTO: BLOOMBERG

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    [SINGAPORE] Despite earlier expectations of US President Donald Trump’s reciprocal tariffs, investors were caught off guard by the scale and rationale of his latest move, sparking a rush to gold as equities sank.

    In Asian trading on Thursday (Apr 3), spot gold surged to a fresh high of US$3,167.71 per ounce, while June gold futures peaked at US$3,198.40. Prices later pared gains, with spot gold hovering around US$3,126 per ounce by 4.49 pm – still up more than 19 per cent so far this year.

    The slight pullback from the new record high was led by investors liquidating gold positions to meet margin calls triggered by equity losses although the long-term fundamentals for gold remain strong, said Sim Moh Siong, currency strategist of Bank of Singapore.

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