Gold regains strength, defying market jitters amid tariff tensions
File photo shows a stack of gold bars placed on top of a U.S. hundred-dollar bill, accessed on Jan. 29, 2025. (Adobe Stock Photo)
Juan Carlos Artigas, Head of Global Research at the World Gold Council, emphasized that gold remains one of the best-performing haven assets, noting that the recent price pullback is a normal response to the global sell-off triggered by U.S. tariffs announced by President Donald Trump.
Speaking to Anadolu Agency (AA), Artigas highlighted that gold prices have shown a consistent upward trend since the beginning of the year. He added that uncertainty remains about the long-term impact of tariffs on the gold market.
“Some market participants may have taken partial profits from earlier gold positions. However, our analysis indicates that strong fundamentals continue to support investment demand in the current environment,” he said.
“Moreover, we believe that the recent price dip could offer some relief, helping to sustain consumer demand.”
Artigas acknowledged that headwinds may persist in the gold market, with short-term reactions driven by profit-taking and ongoing news cycles. “Since the beginning of the year, gold has risen by more than 14%, maintaining its position as one of the top-performing asset classes,” he noted.
Gold rebounds, tariff uncertainty remains
The reciprocal tariffs announced by Trump on April 2 have heightened fears of a trade war, creating selling pressure across global markets, including gold.
Despite this, strategists believe the downward pressure on gold will be temporary, with demand likely to remain strong amid the uncertainty caused by the tariffs.
Following tariff-related tensions, gold prices saw a sharp decline of more than 2% last Friday. After reaching a record high of $3,167.86 per ounce, prices fell back to around $3,010 due to lingering uncertainty.
As of 1:35 p.m. GMT on Wednesday, gold prices had rebounded over 3%, rising above $3,075 per ounce.
Analysts believe the recent price dip may have been driven by investors seeking to offset losses in equity markets by taking partial profits in gold.
According to gold and commodity strategists, tariff-related uncertainty is likely to continue enhancing gold’s appeal as a haven.
Additionally, central bank purchases are expected to further support demand.
