Gold and Oil Shine on Trump Tariff Threats: Global markets are gripped by anticipation and anxiety
as U.S. President Donald Trump prepares to announce a new package of tariffs
that could ignite a full-scale trade war.
Amid this climate of uncertainty, gold and oil have emerged as the top-performing assets, each for its reasons.

Contents

Gold Shines
Anticipated Tariffs

Oil Holds Steady

Fragile Balance
Safe-Haven Assets Gain Appeal

Gold Shines as a Safe Haven Amid Global Uncertainty

Gold has recently maintained its record levels,
supported by intense buying activity driven by market fears over potential economic and political fallout.
The yellow metal-stabilized at $3,125.58 per ounce after hitting an all-time high of $3,127.92 in the previous session.

This exceptional performance follows gold’s best quarterly gain since September 1986,
with prices rising nearly 20% since the beginning of 2025.

Analysts, including Amy Gower from Morgan Stanley,
believe that strong physical demand and increased investor interest in gold-backed ETFs fuel this upward trend.

According to Gower, there’s still room for more gains,
projecting that gold could reach between $3,300 and $3,400 this year
in line with Goldman Sachs’ recent forecast upgrade to $3,300 per ounce.

Anticipated Tariffs Boost Gold’s Attractiveness

Investors are anxiously awaiting Trump’s speech on Wednesday.
The president is expected to announce broad tariffs on all U.S. trade partners,
amplifying uncertainty and driving more demand for gold as a safe-haven asset.

Notably, after several years of outflows,
holdings in gold-backed ETFs have increased by 6% since the start of the year.
Meanwhile, expectations for Federal Reserve rate cuts remain limited,
making gold more attractive despite offering no yield.

Oil Holds Steady Despite Tensions… Trump Threatens Buyers

On the other hand, oil prices stabilized following a strong rally on Monday,
spurred by Trump’s remarks about imposing “secondary sanctions” on countries continuing to buy Russian oil.

Brent crude for June delivery traded near $75 per barrel after jumping 2.8% — its biggest gain since mid-January.
West Texas Intermediate (WTI) also climbed past the $71 mark.

Despite these gains, oil markets remain surrounded by mixed signals
ranging from geopolitical threats and sanctions on Iran and Russia to expectations of increased output from the OPEC+ alliance.

A Fragile Balance in Energy Markets

Oil ended the year’s first quarter at nearly the same level it began after a volatile period.
If the U.S. tariffs are implemented, global energy demand could be negatively impacted,
potentially offsetting the supply constraints caused by sanctions.

Meanwhile, China — the world’s largest oil importer
– posted its fastest industrial growth in March of over a year.
However, future outlooks remain unclear due to the looming impact of upcoming trade tariffs.

Safe-Haven Assets Shine Brighter in a Volatile World

Amid rising trade tensions, uncertain monetary policies,
and Trump’s aggressive rhetoric, investors view gold as a reliable haven,
while oil is a speculative tool amid geopolitical flux.
The latest market movements reflect a broader shift toward risk hedging and caution
as the world awaits critical decisions that may reshape the global economic landscape.

Gold and Oil Shine on Trump Tariff Threats

Gold and Oil Shine on Trump Tariff Threats

Related Topics