Page 28 - Bullion World Volume 5 Issue 06 June 2025

Bullion World | Volume 5 | Issue 06 | June 2025
B ullion W orld | V olume 5 | I ssue 06 | J une 2025
Trump’s Tariffs Fuel Gold

Price Surge and Volatility

in Asian Gold Markets

Kallanish Index Services

Trump’s aggressive tariff policy Trade tensions eased, however, when US officials

Since US President Trump’s inauguration on January scaled back tariffs in late May by announcing a 90-
20, 2025, his administration has implemented several day tariff pause and reducing additional levies to 10%.
aggressive tariff measures that have disrupted Optimism for de-escalation grew after China and the
global trade, causing market turmoil and heightening US lowered their counter tariffs following trade talks on
economic uncertainty. From the initial announcement May 12, amid ongoing negotiations with other key US
on February 1 focused on Mexico, Canada and China, trading partners.
through “Liberation Day” on April 2 to the present,
the tariffs have not only significantly increased in most The volatile nature of Trump’s tariff policies has
cases but also expanded to include all countries. intensified economic growth concerns, driving
investors to seek refuge in haven assets like gold.

While most nations have taken a diplomatic The yellow metal has logged a fourth month streak
approach, major trading partners like China, Canada, of higher monthly close since the start of the year,
and the EU have adopted a more confrontational reaching a new all-time high of USD 3,500.20/oz on
stance, implementing retaliatory tariffs. These April 22, before it gave up a chunk of those gains as
countermeasures significantly heightened trade US-China relations began to thaw.
tensions, leading to a tit-for-tat tariff escalation, with
duties reaching as high as 245% for China.

28
28