The price of gold surged to an all-time high on Wednesday as mounting fears over the deepening trade war between the United States and China rattled global markets.
Gold climbed to $3,357.40 (approximately ₦4.9 million) per ounce before easing slightly, marking a nearly one-third increase in value since the start of the year. The sharp rise reflects growing investor anxiety, with many turning to gold as a traditional safe haven in times of economic uncertainty.
The surge followed a warning from US Federal Reserve Chair Jerome Powell, who cautioned that President Donald Trump’s aggressive tariff policies could slow economic growth, drive up consumer prices, and cost American jobs.
“Higher-than-expected tariffs announced in recent weeks could result in slowing US economic growth and rising prices for consumers,” Powell said during a speech at the Economic Club of Chicago.
Tensions between the world’s two largest economies have escalated rapidly since Trump’s return to office in January. The US has imposed tariffs as high as 145% on a wide range of Chinese imports. In retaliation, China has responded with tariffs of up to 125% on American goods.
Confusion also surrounds the US’s future trade policy, as some planned tariffs on other countries have been delayed for 90 days, leaving businesses and investors uncertain about what lies ahead.
“This is full lifeboat mode,” said Stephen Innes, managing partner at SPI Asset Management. “Gold is the most crowded trade on the planet right now. The dollar is stumbling under the weight of trade-policy whiplash.”
Jesper Koll of financial advisory firm Monex Group echoed that sentiment, noting that investors are increasingly seeking tangible assets. “Everyone is looking for ‘real’ assets. It’s becoming clear that Team Trump’s ‘move fast and break things’ approach to policy-making is here to stay.”
Analysts are comparing the current gold rally to the dramatic surge during the Iranian Revolution in the late 1970s, when gold prices doubled in just three months.
While the Trump administration argues that tariffs will revitalize domestic manufacturing and strengthen the economy, for now, investors are retreating to the relative safety of gold as global uncertainty continues to rise.
