Gold prices hover near record high as Trump tariff fears boost its safe haven appeal

US President Donald Trump had pledged last Tuesday to impose 25% tariffs on automobile, semiconductor and pharmaceutical imports into the US.

Published on: Feb 20, 2025, 09:07:49 IST

By HT News Desk | Edited by Abhyjith K. Ashokan

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Gold prices are hovering around a new record high as investors rushed to put their money into the safe haven asset following US President Donald Trump's global tariff threats.

Sovereign Gold Bond is issued by the Reserve Bank of India (RBI) on the government's behalf. (Representative Image)

According to Bloomberg data, bullion traded near $2,935 an ounce in the global markets after earlier hitting a fresh record high of $2,947.01.

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In India, gold traded at ₹85,879 for 10 grams on the Multi Commodity Exchange (MCX) for April 2025 futures. The high was ₹86.592.

Last Tuesday, Trump pledged to impose 25% tariffs on automobile, semiconductor and pharmaceutical imports into the US.

Another aspect contributing to the rising gold prices is the escalating geopolitical tensions after senior officials from the US and Russia met for a first round of talks over the war in Ukraine.

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Ukraine President Volodymyr Zelensky was left isolated and this compounding fears that a deal to resolve the war will be reached without Kyiv’s involvement, the Bloomberg report added.

Gold climbed by more than a quarter in 2024 alone. In 2025, it hit several record highs, all fanned by Trump's trade policies.

Even Goldman Sachs raised its year-end target for gold to $3,100 an ounce earlier this week, citing that stronger-than-expected central-bank buying would be a key driver, according to the report.

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Should broader uncertainty over economic policy persist, including on tariffs, bullion could hit $3,300, it added.

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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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