Trump Effect! Gold Surges to Highest Level in 2 Months

The price of gold skyrocketed at the start of trading on Tuesday (January 21, 2025) following Donald Trump’s inauguration as the 47th President of the United States on Monday local time.

Initially, gold prices remained relatively steady, but it eventually surged by over $20 or 200 pips, reaching $2,726.95 per troy ounce, marking the highest point since November 6, 2024.

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This increase came after Trump hinted at the possibility of raising import tariffs by 25% on goods from Canada and Mexico, effective February 1.

Such a move raises concerns about igniting a trade war with Canada. Prime Minister Justin Trudeau had previously indicated that Canada would respond should Trump proceed with increasing the import tariffs.

As a result, the demand for gold as a safe haven asset surged, contributing to the dramatic spike in its price.