Return to Eternal Values: Gold Sets Historic Records Amid Trump’s Statements
1 April 2025 14:09
Gold’s record rise continued to a new all-time high on Tuesday, supported by demand for safe-haven assets as investors prepare for US President Donald Trump’s planned announcement of mirror tariffs. This is reported by "Komersant Ukrainian" with reference to Reuters.
The spot price of gold rose 0.3% to $3131.56 per ounce as of 11:14 a.m. Kyiv time after hitting a record high of $3,148.88 earlier in the day. US gold futures rose 0.3% to $3,159.10.
Silver stabilized at $34.06 per ounce, platinum fell 0.4% to $988.35, and palladium rose 0.3% to $985.86.
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The historic rise of gold
Traditionally seen as a hedge against uncertainty and inflation, gold is up more than 15% this year. The yield-free precious metal also usually performs well in low interest rate environments.
During the last session, gold completed its strongest quarter since 1986 and climbed above $3,100 an ounce, marking one of the most significant rises in the precious metal’s history.
This year’s gold rally was also supported by strong demand from central banks, geopolitical instability in the Middle East and Europe, and increased flows into gold-backed exchange-traded funds.
Impact of Trump’s statements on the precious metals market
US President Donald Trump said on Sunday that on Wednesday he would announce the introduction of mirror duties against all states that impose retaliatory duties on goods from the United States.
Goldman Sachs on Monday raised the probability of a US recession to 35% from 20% and said it expects more interest rate cuts by the Federal Reserve as Trump’s tariffs shake up the global economy and disrupt financial markets.
“Trump’s comments on tariffs and his increasingly erratic stance on Russia’s war against Ukraine are creating the perfect chaos for new record gold prices, surpassing even the COVID pandemic five years ago,”
– said Adrian Ash, Head of Research at BullionVault, an online marketplace.
“The market is closely watching April 2 for further economic data that could influence the Federal Reserve’s policy decision. If a rate cut is confirmed, it will provide additional support to gold’s upward trajectory,”
– says Alexander Zumpfe, precious metals trader at Heraeus Metals Germany.
Investors will also be keeping an eye on US job openings later on Tuesday and the US non-farm payrolls report on Friday.
The historical role and value of gold
Since ancient times, gold has played an exceptional role in the development of human civilization. The first evidence of its use dates back to about 4000 BC in ancient Egypt and Mesopotamia, where it was valued for its rarity, beauty and resistance to corrosion. Pharaohs and rulers demonstrated their wealth and power through gold jewelry, masks, and household items that later became priceless archaeological finds.
As trade developed, gold naturally evolved into a universal medium of exchange because it was portable, divisible, homogeneous, and had a stable intrinsic value. The first gold coins appeared around 700-600 BC in Lydia (modern Turkey), and subsequently the gold standard became the basis of the international monetary system for several centuries. Even after the abolition of the gold standard in 1971, when U.S. President Richard Nixon ended the convertibility of the dollar into gold, central banks continue to hold significant gold reserves as a strategic asset.
Since the beginning of its history, gold has symbolized not only economic wealth but also spiritual and cultural value. Many religious and cultural traditions have associated this precious metal with divine powers and eternity. Gold objects were used in rituals, temples and shrines, and in art, gold was often used to depict holiness, divine light and higher power. The cultural significance of gold is reflected in numerous myths, legends and literary works, from the legend of King Midas to the search for the golden fleece.
In today’s world, gold retains its role as a reliable store of value and a safe haven in times of economic crisis and geopolitical instability. Its value usually increases when confidence in paper currencies and financial markets falls. In addition to its investment value, gold is widely used in electronics, medical equipment, dentistry, and aerospace due to its unique physical and chemical properties – high electrical conductivity, corrosion resistance, and ductility. These features ensure that gold is in constant demand and make it not only a symbol of wealth but also a strategically important raw material for the development of high-tech industries.
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