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2w ago

Gold Stabilizes Above $3,000 After Tariff Turbulence and Margin Sell-Offs

Recent market volatility caused by Trump's tariff announcements led to short-term gold price declines, but analysts predict a rebound as central banks continue to stockpile the precious metal.

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Gold, considered a hedge against global uncertainties and inflation, has risen more than 18% in 2025, driven largely by Trump's tariff plans
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Overview

  • Gold prices recently hit a record high of $3,133 an ounce before dropping below $3,000 due to market disruptions and forced liquidations.
  • President Trump's new tariffs triggered significant financial market volatility, leading to sell-offs in gold to cover margin calls.
  • Central banks have been aggressively increasing gold reserves, purchasing over 1,000 tonnes annually since 2022, to reduce reliance on the US dollar.
  • Analysts view the recent dip in gold prices as temporary, with expectations of a rebound driven by inflation fears and global economic uncertainty.
  • Despite short-term fluctuations, gold remains a trusted safe-haven asset, with demand supported by geopolitical tensions and financial instability.