Gold prices rose to a record high on Monday as safe haven demand was underpinned by deepening concerns about U.S. President Donald Trump’s tariff agenda. Spot gold (XAUUSD) rose to an all-time high of $3,128.06 an ounce, while June futures rallied to a high of $3,158.20 as global stock markets plunged ahead of Trump’s so-called ‘liberation day’ on April 2nd, when he is set to impose sweeping “reciprocal” tariffs on other nations. While gold rallied, the Nikkei 225 fell over 4% on Monday to hit its lowest level in half a year as sentiment cratered.
Trump indicated on Sunday that all countries would be hit by tariffs, not just those with the largest trade imbalances, having previously announced that the car industry would see 25% tariffs this week. Meanwhile, a Wall Street Journal report suggested the White House was considering broader and higher tariffs, including potentially a blanket 20% tariff on all trading partners.
Uncertainty about the extent and severity of these tariffs has fueled investors to seek shelter away from stocks and into assets like gold, particularly gold ETFs, such as the SPDR Gold Shares (GLD) and the iShares Gold Trust (IAU), which closely track the price of the underlying metal. Gold prices have risen by around 18% so far this year, leaving the precious metal on track to record its best quarter since 1986. In contrast, the S&P 500 has fallen by about 5% this year while the Nasdaq 100 has dipped 8%.
Trump has repeatedly described April 2nd as “liberation day,” when he will impose tariffs to match a range of levies and taxes imposed by trading partners. Trump’s Treasury Secretary Scott Bessent has several times indicated that the focus of these tariffs would be about 15 countries with the largest trade imbalances with the U.S. that he’s labelled the “dirty 15.” However, Trump on Sunday indicated the tariffs would be broader than that. “You’d start with all countries. Essentially all of the countries that we’re talking about,” he said, apparently dashing hopes that the focus of tariffs would be narrow.
April 2nd will also see Trump’s 25% tariffs on the automobile sector take effect, while the sector exemptions from 25% tariffs on Canada and Mexico are set to expire then. He has also previously indicated a desire to impose 25% tariffs on semiconductors and pharmaceuticals.
Aside from tariffs, investors were also seeking shelter from worries about the U.S. economy. Goldman Sachs said there is a 35% chance of a recession in the U.S. in the next 12 months, up from a previous estimate of 20%.
What Is the Best Gold ETF to Buy?
For investors interested in investing in Gold ETFs, it’s possible to compare Gold Miners ETFs or straight Gold ETFs using the TipRanks ETF Comparison Tool. Other gold ETFs investors can check out include the Aberdeen Standard Physical Gold Shares ETF (SGOL), GraniteShares Gold Shares ETF (BAR) and the SPDR Gold MiniShares Trust ETF (GLDM).
