LONDON, February 19, 2025 – Gold prices have soared alongside the U.S. dollar following new tariff threats from U.S. President Donald Trump. On Wednesday, the price of the yellow metal hit a record high of $2,947.01 per ounce.
Analysts suggest that gold is experiencing upward momentum due to its reputation as a safe-haven asset and a hedge against inflation, particularly in light of growing geopolitical and economic uncertainties.
On Tuesday, the U.S. president announced plans to impose tariffs of nearly 25% on imported automobiles, semiconductors, and pharmaceuticals, although these measures are set to take effect only on April 2.
The dollar has also gained strength amid these looming tariff threats, an inflationary move that may compel the Federal Reserve to keep interest rates elevated. As of 10:35 GMT, the greenback has risen by 0.20% against the euro, trading at $1.0424, and has increased by 0.14% against the pound, valued at $1.2595.
