Amid uncertainties surrounding the tariff policies of the Donald Trump administration, fears of stagflation—a combination of high inflation and economic slowdown—have resurfaced, pushing international gold prices to a new record high on March 28.
According to Reuters, at around 3:10 PM Eastern Time on that day, the spot price of gold rose 0.6% from the previous close, reaching $3,074.35 per ounce. During the trading session, gold hit an intraday high of $3,086.70 per ounce, surpassing its previous record.
Gold futures also set a new high on the same day. At the New York Mercantile Exchange, the closing price for June delivery gold futures climbed 0.8% from the prior day to $3,114.30 per ounce, exceeding the previous record closing price.
Following the Trump administration’s announcement of a 25% tariff on automobiles on March 26 and its foreshadowing of reciprocal tariffs to be revealed on April 2, tariff-related uncertainties have bolstered the preference for safe-haven assets.
The release of the March core Personal Consumption Expenditures (PCE) price index, which rose 2.8%—exceeding market expectations—further fueled inflation concerns. Additionally, the University of Michigan’s March consumer sentiment index, which deteriorated more than anticipated, heightened fears of stagflation, providing additional momentum for the rise in gold prices.
Peter Grant, senior metals strategist at Javelin Metals, remarked, “Growing concerns over tariffs, trade, and geopolitical uncertainties are sustaining demand for safe-haven assets.”
[Yonhap News]