April 02, 20250
U.S president, Donald Trump unpredictable trade has been seen as a significant factor responsible for the surge in the price of Gold so far in 2025 as Gold price rose to an all-time high of $3115 on Wednesday in the global commodities market amidst increase move into safe haven.
At the same time, according to ING note, copper has continued to retreat from nine-month highs as trade tensions intensified
According to report on Marketforces Africa, Gold prices soared by more than 16% year-to-date, extending its momentum from 2024. Price of Gold has surpassed the previous record after US President Donald Trump announced “permanent” 25% tariffs on auto imports, which created tension in the global market.
However, analysts said they see uncertainty over trade and tariffs, along with central bank buying and inflows into exchange traded fund holdings continuing to buoy gold prices.
READ MORE; Oil Prices Fall Due To Uncertainties
Meanwhile, copper has continued to decline on it nine-month high as expectations for the ex-US tightness are retreating following earlier reports this week that US tariffs on copper imports could be imposed anytime soon.
Tariffs are bearish for copper and other industrial metals in the context of slowing growth and keeping inflation higher for longer. If US inflation remains persistent or rebounds, it could prompt the Federal Reserve to delay or increase interest rate cuts.
With growth in the US likely to slow on the back of tariffs and China already struggling to revive its economy, looking ahead demand for copper and other industrial metals is likely to weaken.
“With inflation concerns rising and geopolitical tensions stirring uncertainty, gold’s climbing value hints at broader economic shifts.
“These trends, combined with evolving trade policies and monetary strategies across major economies, suggest a period where gold could continue to shine not just as a commodity, but as a pivotal element in global financial strategies”.
