Editor’s Note
This article examines the recent surge in gold prices, driven by shifts in U.S. tariff policy and broader market uncertainty. It explores the factors behind gold’s renewed appeal as a safe-haven asset.
Gold surged sharply on February 23 as global markets digested a major shift in US tariff policy. During that move, gold jumped about 1.7% to nearly $5,191 per troy ounce.
Three major forces are primarily driving gold’s recent rally.
Most people view tariffs and geopolitical risks as simple “gold up” headlines. In actual trading, it’s more complex.
Tariffs are tricky for gold because they can create two contradictory effects.
Increased anxiety can push gold prices higher.
They can also raise inflation expectations, which can push yields higher and pressure gold.
This week is a clear example. A new temporary import duty has been announced under Section 122 of the Trade Act, presented as an effort to resolve international payment issues. Such short, sharp policy windows typically keep markets on edge.
Geopolitical risk remains significant because it affects investors’ assessment of safety and liquidity. Ongoing risk points include:
The continuation of the emergency situation linked to Ukraine-related risks.