Gold prices soar — What does Trump's decree have to do with it
On April 16, world markets woke up to news that instantly shook the global financial system: the price of gold futures on the Comex exchange updated its historical high, reaching $3,304.20 per troy ounce. This unprecedented jump caused a shock in the financial world and raised many questions.
According to Bloomberg, this is more than 1.97% growth in just one day — and more than 20% since the beginning of the year. And all of this is against the backdrop of US President Donald Trump's decree launching an official investigation into the import of processed strategic minerals.
The goal is to check whether this trade poses a threat to American national security. We are talking about key resources: cobalt, nickel, rare earth elements, uranium, etc.
This decision, which may include the imposition of tariffs or other restrictions on imports of these resources, triggered an immediate reaction from investors. The trigger was the fear of another trade war with global consequences. The markets began to over-price the risks, and gold once again became a safe-haven asset.
Gold as a barometer of fear: why everyone rushed to buy
Investors are actively withdrawing capital from risky assets, in particular equities, in favor of safe havens. Gold is traditionally one of them. Since the beginning of the year, investment funds have already attracted more than $80 billion in gold assets. Last week, this precious metal rose by more than 6%.
Amid growing geopolitical and economic risks — from recessionary signals in the US to a new phase of global protectionism — gold is seen as a guarantor of capital preservation.
"In a Bank of America global fund manager survey this week, 42% of respondents expected gold to be the best performing asset class in 2025, up from 23% in March," the publication reads.
What's next: will gold become even more expensive
The current rally in gold is not only an emotional market reaction, but also a signal of expected long-term turbulence. The dollar is weakening, inflation risks remain high, and central banks are rebuilding their gold reserves. All of this could stimulate further price growth, analysts say.
If the investigation initiated by Trump leads to real restrictions on mineral imports, it will tighten global supply chains, further provoking demand for gold as a hedge against instability.
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