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Gold prices rise to $5,230 amid tariffs and iran tensions
Gold climbed for a fourth consecutive day, reaching around $5,230, driven by new 15% tariffs from U.S. President Donald Trump and the largest U.S. troop buildup near Iran in two decades, according to Bloomberg.
Analysts say investors are increasingly turning to precious metals as a safe haven amid the dual risks of a potential trade war with the European Union and the threat of military escalation in the Middle East. Bullion has already recovered a 7% drop from earlier this month.
Washington’s decision to impose a 15% import duty has unsettled global trading partners, with the EU warning the move could violate existing agreements and increase recession risks. Heightened tensions over Tehran’s nuclear program, combined with reassurances from the White House countering Pentagon concerns, have pushed investors toward physical gold over government bonds and currencies.
Most major banks expect gold to test its recent record high of $5,595 per ounce. Supporting factors include uncertainty over Federal Reserve policy, geopolitical risks linked to Iran negotiations, and declining confidence in developed nations’ sovereign debt.
Meanwhile, Russia began selling reserves due to shrinking oil revenues, with the Central Bank of Russia reducing gold holdings for the first time in years to take advantage of the price surge. Gold had previously hit a record near $5,600 per ounce in late January before a sharp reversal wiped out $7 trillion from global markets in just 36 hours.
