Gold Tops US$3,350 as Trump’s Tariff Threats Spark

Gold extended its weekly rally on May 23, climbing above the US$3,350 mark as investors sought safety after Donald Trump reignited global trade fears with fresh tariff threats.

Spot gold rose 1.6% to US$3,351.95/oz by 10:35 a.m. ET, on track for its strongest weekly performance in six weeks. US gold futures were also up 1.7%, trading at US$3,352.10/oz in New York. The surge followed Trump’s surprise proposal to impose 50% tariffs on imports from the European Union starting June 1. He also threatened a 25% tariff on iPhones not manufactured in the United States, targeting Apple directly.

The announcements sent equity markets tumbling and pressured the US dollar, pushing investors toward traditional safe-haven assets like gold. Gold now trades roughly US$150 below the all-time high set last month. Year-to-date, the metal has gained more than 25%, driven by ongoing fallout from the US-led trade conflict and rising demand for portfolio protection.

Investor anxiety has also grown over the US government’s fiscal outlook. Following last week’s credit downgrade by Moody’s, concerns have intensified over Trump’s latest tax bill, which passed the House on Thursday and is expected to widen the federal deficit further.

“As Moody’s downgrade highlights growing concerns about US creditworthiness and inflation remains a threat, investors are turning to physical gold for stability,” said Rick Kanda, Managing Director, Gold Bullion Company. “This surge in demand is pushing prices higher, and it looks like we are just getting started.”