Metal markets witnessed significant movements at the beginning of the week, with gold hitting record highs, while copper declined significantly. This market movement stemmed from uncertainty stemming from US President Donald Trump’s statements, which included plans to impose new tariffs on a number of countries. These developments boosted demand for gold as a safe haven amid fears of the repercussions of the global trade war and an economic recession.
Gold hits new record highs
The price of gold reached more than $3,100 per ounce, a level never before reached. This increase was primarily driven by uncertainty surrounding the global trade outlook, especially in light of President Trump’s escalation of tariff plans. Gold prices have risen 19% since the beginning of the year, reflecting investors’ shift towards safe-haven assets away from risk.
The significant rise in gold prices came amid growing concerns about the impact of Trump’s trade war. In March 2025, the yellow metal recorded a series of record highs, making gold one of the most attractive assets for investment in difficult times.
Copper Sees a Noticeable Decline
Unlike gold, copper saw a significant decline in metals markets. Copper futures fell from a nine-month high amid growing concerns about the impact of tariffs on industrial metals. Copper’s decline linked closely to global economic pressures, as expectations of a slowdown in global growth negatively impacted demand for industrial metals like copper.
As for other metals, prices varied. For example, platinum futures settled at $1,001.25 per ounce, while silver prices rose 0.7% to $35.065 per ounce.
Impact of Tariffs on Markets
Talk of Trump’s proposed tariffs is raising concerns in global markets. Reports indicate that Trump plans to impose tariffs of up to 20% on a group of countries, a move that would significantly impact international trade. The new tariffs are set to take effect on April 2, 2025, on “Liberation Day,” and officials will announce tariffs on imports from at least 15 countries.
The impact of these tariffs is already being felt in metals markets, with declines in copper and other industrial metal prices. Meanwhile, gold prices have risen sharply due to increased demand for safe-haven assets, as investors believe gold will be a safe haven amid these trade tensions.
Trump and Recession Fears
Fears of a US recession have added further pressure to global markets. Goldman Sachs warned that the probability of a US recession has risen to 35% over the next 12 months, compared to a previous forecast of 20%. The investment bank expects Trump’s trade policy, including tariffs, to lead to higher inflation and slower economic growth in the near future.
This slowdown in economic growth has strengthened investors’ appetite for gold as a safe haven, as the yellow metal is considered a hedge against inflation and recession. At the same time, concerns about rising inflation have grown, especially in light of the price increases associated with Trump’s tariffs. At the same time, negative economic expectations will continue to influence global financial markets, ensuring continued volatility in commodity prices and financial markets in the coming months.
Gold as a Safe Haven in Times of Crisis
Amid these economic and political conditions, gold has become a preferred choice for many investors. Given the ongoing volatility in markets, gold provides a level of security that other assets such as stocks or currencies lack. Investors consider gold a safe haven during times of economic and political crisis, which explains the significant rise in its prices over the past few weeks.
On the other hand, despite the significant gains achieved by gold, industrial metals such as copper did not find the same support. Copper fell 0.3% on the London Stock Exchange, while futures in the United States fell 0.7%. This decline comes at a sensitive time, as investors seek to reduce their exposure to risks in unstable markets.
Future Implications of Trump’s Trade Policy
Trump’s trade policy will continue to affect global markets for the foreseeable future. If the new tariffs take effect on April 2, they could significantly reduce international trade volume and negatively impact economic growth in many countries. This will also lead to significant volatility in metals markets, with gold likely to continue its upward trajectory amid economic concerns, while industrial metals like copper may continue to decline due to the impact of tariffs on supplies and prices.
In conclusion, the record high in gold prices clearly reflects the effects of global uncertainty caused by President Trump’s tariff war. This coincided with growing fears of an economic recession in the United States, which led investors to turn to gold as a safe haven. With the imposition of tariffs approaching on April 2, metals markets will remain under continued pressure.
