Tariffs and geopolitical risks fuel gold’s momentum
Market participants are reacting to a complex backdrop that has intensified ongoing conflicts in Eastern Europe and rising tensions in the Middle East. The situation in Russia and Ukraine remains unresolved, yet recent developments have stirred up volatility once again.
Moreover, the renewed threat of retaliation and instability in the Middle East has shifted attention toward tangible assets.
“Investors are seeking safety once more,” notes David Lennox, a market strategist at Fat Prophet. “They’re adjusting their portfolios to include more gold and silver as geopolitical uncertainties loom.”
Additionally, the sudden introduction of new tariffs by the US administration, including a proposed 100% levy, has caught investors off guard, especially as they have been wary of protectionist measures.
Analysts worry that escalating tariffs could negatively impact global growth while simultaneously supporting precious metals, which tend to perform well during economic downturns.
Dollar weakness boosts gold’s attractiveness despite strong job figures
Despite the recent employment report indicating that the US added 177,000 jobs in April—surpassing expectations—the dollar continues to weaken.
