On Thursday (March 13) during the Asian market, spot Gold suddenly accelerated in price, just breaking through 2945 USD/oz, with a peak of 2946.04 USD/oz, a strong increase of 12 USD during the day. Recent comments from President Trump of the USA have raised risk-averse sentiment and stimulated an increase in Gold prices.

(Spot Gold 5-minute chart Source: 24K99)

Gold, as a traditional safe-haven asset, is typically favored by investors during times of increased uncertainty. As the trade war escalates, investors may shift funds from higher-risk assets (such as Stocks) to Gold, driving up its price.

On the previous trading day, the uncertainty regarding tariffs drove funds towards safe-havens, while cooling inflation in the USA kept market expectations for a Federal Reserve interest rate cut unchanged, resulting in a significant rise in Gold prices.

Spot Gold closed up $17.65 on Wednesday, an increase of 0.61%, reported at $2933.22 per ounce.

President Trump of the USA escalated the global trade war again on Wednesday local time, threatening to impose further tariffs on EU goods in response to the EU's retaliatory measures against the tariffs already imposed by the USA.

(Screenshot source: Reuters)

Just a few hours after the policy imposing a 25% tariff on all imported Steel and Aluminum to the USA took effect, Trump stated that if the EU continues its plan to impose retaliatory tariffs on certain American commodities next month, he will implement additional punitive measures.

The EU's countermeasures will take effect next month, targeting $28 billion worth of US goods, such as dental floss, diamonds, bathrobes, and bourbon whiskey. Although these products represent only a small portion of EU-US Trade, the alcohol industry warns that this will have a "devastating" impact on its industry.

On Wednesday, Trump said in the White House when asked by reporters if he would retaliate: "I will certainly respond. You see, the EU was established to take advantage of the USA."

Trump said to reporters at the White House: "Whatever they charge us, we will get back." This statement further escalated tensions in the Global Trade war.

(Screenshot source: Bloomberg)

Trump did not specify what measures he would take. Trump's Metal tariffs took effect on Wednesday, immediately prompting retaliation from the EU and Canada, and urging other countries to intensify negotiations with the Trump administration on lifting import tariffs.

Reuters UK reported that Trump's excessive focus on tariffs has shaken the confidence of investors, consumers, and businesses, raising concerns about a potential economic recession. He has also repeatedly threatened to annex neighboring Canada, straining relations with Canada, which is a close ally and major trade partner of the USA.

Canada, as the largest Supplier of Steel to the USA, announced retaliatory tariffs on American products worth 20 billion dollars in response to Trump's tariff measures. Canadian Finance Minister Dominic LeBlanc stated that Canada will not stand by in the face of unfair trade practices.

USA Commerce Secretary Howard Lutnick stated that Trump will also implement Trade protection on Copper.

In the first quarter of 2025, the price of Gold soared to record highs continuously. Factors driving the rise in Gold prices include investors' concerns about the chaos caused by Trump administration trade policy, signs of ongoing purchases by central banks, and speculation that the Federal Reserve may further cut interest rates.

Last year, the Federal Reserve cut interest rates by 100 basis points. Due to the worsening economic outlook, financial markets expect the Federal Reserve to resume interest rate cuts in June, after pausing them in January.

According to preliminary Statistics from Bloomberg, Gold-backed Exchange Traded Funds have been attracting Inflow, continuously expanding over the past six weeks, reaching the highest level since December 2023.

Since the beginning of this year, the spot Gold price has surged by 11%. Last month, the Gold price hit a record high slightly above $2956 per ounce.

As of Peking time 11:11, spot Gold is reported to be 2945.29 dollars per ounce.