Bank of Taiwan expects gold to rise as Trump tariffs enacted

Mon Mar 31 2025

The Bank of Taiwan expects gold prices to rise this week amid the impact of US tariff policies. In its weekly gold report published Monday, the bank said the price of gold could exceed US$3,100 (NT$102,835) per ounce if the US imposes steep tariffs and other countries respond with retaliatory measures, per CNA.

Earlier Monday, Reuters reported that spot gold prices had already reached a record high of US$3,106.50 per ounce. Gold has surged more than 18% this year as investors seek safe-haven assets amid global economic and geopolitical uncertainty.

The Bank of Taiwan said the recent gains reflect a broader trend across Asian stock markets, where investors have looked to “safe-haven funds” after former US President Donald Trump announced new tariffs on automobiles. It noted that the policy responses from Canada, the EU, and Japan have amplified market anxieties.

The report also highlighted that 17 major gold exchange-traded funds increased their holdings by more than one metric ton in March, reaching a total of 2,730 metric tons. Meanwhile, central banks purchased over 1,000 metric tons of gold last year, marking the third consecutive year of such large acquisitions.

However, the bank cautioned that if the US opts for lighter-than-expected tariffs or delays implementation, market sentiment could ease, potentially reducing risk-averse behavior. It also warned that new tariffs could stoke inflation concerns.

In January, the bank had already forecast rising gold prices amid expectations of Trump’s return to protectionist policies, including additional tariffs, stricter immigration measures, and ambitions to control strategic locations such as the Panama Canal and Greenland.

The tariffs are expected to be announced on Wednesday. Taiwan’s trade surplus with the US hit a record high last year, with exports totaling NT$3.69 trillion (US$111.4 billion), largely driven by demand for semiconductors and other tech products.

Source: https://www.taiwannews.com.tw