Gold Soars as Global Markets Brace for Tariff Shockwaves

Gold continued its historic climb this week, touching another record high as investors reacted to growing fears over a global trade war. The surge came in response to US President Donald Trump’s unexpected announcement of sweeping new tariffs — a move that has triggered a rush toward safe-haven assets like gold and US Treasuries.

On Thursday, spot gold peaked above $3,160 an ounce before settling slightly lower, maintaining its momentum after a strong first quarter. The rally reflects deepening uncertainty as the US moves ahead with a 10% blanket tariff on all imports, alongside targeted duties on specific nations and industries. These include a 25% tariff on cars and trucks that officially takes effect this week, with further restrictions on automotive parts expected next month.

Gold has long been regarded as a hedge against volatility, inflation, and geopolitical risks. This time is no different. As questions loom over the long-term economic impact of the tariffs, central banks and investors alike are turning to bullion. Analysts highlight that the influx of capital into gold-backed exchange-traded funds (ETFs) has reached levels not seen since the early days of the COVID-19 pandemic — a clear sign of risk aversion across global markets.

In addition to retail investment flows, central bank demand remains strong. Combined with falling bond yields and cautious consumer spending, these dynamics have created a perfect environment for gold to thrive.

The broader market is watching closely for Friday’s US non-farm payroll report, which could further influence the Federal Reserve’s stance on interest rates. Meanwhile, investors continue to rebalance their portfolios, seeking shelter from potential economic fallout.

At Decode Global, we recognize the importance of tracking these macroeconomic developments and their impact on investor sentiment. As global uncertainty rises, access to real-time analysis and strategic insight becomes more critical than ever — especially for those navigating fast-moving commodity markets like gold.