Gold Surges Over 1% Amid Safe-Haven Demand Following Trump’s New Tariff Measures
July 11, 2025 — Gold prices experienced a significant rally on Friday, climbing more than 1% to reach a two-week high as investors sought refuge amid escalating global trade tensions. The metal’s surge came in response to U.S. President Donald Trump’s announcement of fresh tariffs, which broadened the scope of the ongoing trade conflict and introduced heightened uncertainty in financial markets.
By 11:32 a.m. EDT (1532 GMT), spot gold was trading up 1.2% at $3,363.46 per ounce, marking its highest level since June 24. Concurrently, U.S. gold futures rose 1.6% to $3,377.80. This uptick reflected a broader shift toward safe-haven assets triggered by heightened geopolitical and economic risks.
Trump’s Tariff Escalation Triggers Market Reaction
In a series of aggressive trade measures, President Trump declared a 35% tariff on imports from Canada, set to take effect next month, and indicated plans to impose general tariffs of 15% to 20% on most other trading partners. These moves intensified the global trade war and unsettled markets worldwide.
Additionally, the President announced a steep 50% tariff on U.S. copper imports, alongside identical levies on goods from Brazil. This tariff expansion added pressure on commodity markets and contributed to increased volatility.
Market Response and Expert Insights
Following the tariff announcements, global stock indices declined, reflecting investor concerns over the implications of heightened trade restrictions on economic growth. Against this backdrop, gold’s appeal as a non-yielding safe-haven asset was reinforced.
“We are in an environment where the uncertainty premium is back in the market and gold is getting a safe-haven bid,” said Aakash Doshi, Global Head of Gold Strategy at State Street Global Advisors. He added that gold prices are likely to trade between $3,100 and $3,500 in the third quarter, noting that after a strong first half of the year, the market may now enter a phase of consolidation.
Gold’s performance is further supported by expectations of a lower interest rate environment. Federal Reserve Governor Christopher Waller reiterated on Thursday that the U.S. central bank might cut rates at its upcoming policy meeting, with investors currently anticipating cuts totaling 50 basis points by year-end. Lower interest rates generally diminish the opportunity cost of holding gold, bolstering demand.
Silver and Other Precious Metals Also Gain
Other precious metals mirrored gold’s upward trend. Spot silver surged 3.4% to $38.30 per ounce, reaching levels not seen since September 2011. Platinum and palladium also posted gains of 0.8% and 5.4%, respectively, trading at $1,371.43 and $1,203.01 per ounce.
The announcement of the copper tariffs impacted derivatives markets as well, causing a rise in premiums on futures contracts for silver, platinum, and palladium against London benchmarks. This led to increased lease rates and a dynamic unwind of positions in white metals markets, though this activity did not influence gold prices significantly.
Looking Forward
As uncertainties persist on the trade front and central banks navigate monetary policy adjustments, precious metals are expected to maintain their role as key safe-haven investments. Market participants will be closely monitoring forthcoming geopolitical developments and economic indicators for further cues.
Reporting by Anushree Mukherjee in Bengaluru and Polina Devitt in London; Additional reporting by Sarah Qureshi; Editing by Paul Simao and Shailesh Kuber.
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