The rise in gold prices shows no signs of stopping as of Friday (March 14, 2025), surpassing the historical threshold of US$ 3,000 per troy ounce for the first time ever.
By 5:20 PM WIB, gold reached US$ 3,004.87 per troy ounce, marking an increase of over US$ 16 or 160 pips. The previous day, gold had already soared by more than US$ 55 or 550 pips.
This sharp increase came following a threat from United States President Donald Trump to impose a 200% import tariff on alcoholic beverages from France and other European nations.
US Secretary of Commerce, Howard Lutnick, stated that Trump is “extremely frustrated” after the European Union raised tariffs on American whiskey imports. This move was a retaliatory action after Trump previously imposed a 25% import tariff on steel and aluminum from all countries, including those in the European Union.
The proposed 200% tariff hike risks igniting an even larger trade war, thereby boosting gold’s appeal as a 避風港 資產。
In addition to trade conflicts, various indicators of an economic slowdown in the US are contributing to positive sentiment for gold. Particularly, inflation data from February indicates a deceleration in growth, which could facilitate further interest rate cuts by the Federal Reserve, further propelling gold prices upward.
