Gold pauses after hitting record high amid Donald Trump tariffs stoking trade war fears

US President Donald Trump threatened to charge a 200% tariff on imports of European wines and spirits after the EU imposed a 50% tax on American whiskey.

Published on: Mar 14, 2025, 09:09:44 IST

By HT News Desk

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Gold held steady on Friday after hitting a record high due to persistent uncertainty over US tariffs, fears of trade tensions, and increased expectations of the Federal Reserve easing monetary policy.

International gold prices reached $2,986.45 an ounce after hitting a record high of $2,989.46, within touching distance of the $3,000 an ounce milestone, according to a report by news agency Reuters.

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Meanwhile, gold futures in India on the Multi Commodity Exchange (MCX) hit ₹87,775.

US gold futures, in particular, rose by 0.3% to $2,999.50.

This comes as trade war fears skyrocketed after US President Donald Trump threatened to charge a 200% tariff on imports of European wines and spirits after the European Union (EU) responded to US tariffs on steel and aluminium by imposing a 50% tax on American whiskey, according to the report.

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Additionally US Labor Department data showed that consumer prices remained unexpectedly unchanged in February, while it had risen 0.2% last month after accelerating 0.5% in January.

All of this drove up the prices of the yellow metal, which is seen as a safe haven asset, serving as a hedge against against political risks and inflation.

Markets are also awaiting the US Federal Reserve's monetary policy meeting next Wednesday, with the current expectations being it may keep its benchmark overnight interest rate in the 4.25%-4.50% range, according to the report

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Russia's President Vladimir Putin had also said on Thursday that the country supported the US proposal for a ceasefire in Ukraine in principle, but also sought a number of clarifications and conditions that appeared to rule out a quick end to the fighting.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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