Gold prices surged to a record high of $2,933 per ounce on February 11, 2025, up from $2,917.90 the previous day, driven by escalating trade tensions under the U.S. President’s new tariff policies.
The surge followed Donald Trump’s announcement of fresh 25% tariffs on steel and aluminium imports, triggering volatility in financial markets.
Since the start of the year, gold has gained 10%, reflecting heightened investor demand for safe-haven assets amid global uncertainty.
Aluminium prices also faced upward pressure as concerns grew that the tariffs could disrupt supply chains and dampen economic growth, potentially reducing demand for the metal. The three-month aluminium contract on the London Metal Exchange edged up 0.3% to $2,635 per tonne.
According to data from the American Iron and Steel Institute, the largest steel exporters to the U.S. include Canada, Brazil, Mexico, South Korea, and Vietnam, with Canada also serving as the top supplier of imported aluminium.
The new tariffs are expected to raise costs for U.S. manufacturers, who rely on imports for an estimated 40% to 45% of their aluminium and 12% to 15% of their steel.
The escalating trade war further strains an already fragile global economy, which continues to grapple with geopolitical crises such as Russia’s military actions in Ukraine and the prolonged conflict in Gaza. These disruptions have destabilized supply chains, driven up commodity prices, and fueled inflation.
In response, central banks have pursued interest rate hikes to curb inflation, though these measures have also constrained economic growth by tightening liquidity for investments.
Trump’s return to the political stage has brought renewed tariff threats, targeting imports from China, Canada, Europe, and Russia, further fueling gold’s rally as investors seek safe-haven assets.
His latest round of global steel and aluminium tariffs amplifies concerns of an intensifying trade war, adding to previous metal duties imposed during his first term. Back then, Trump had introduced 25% tariffs on steel and 10% on aluminium but later granted duty-free exemptions to Canada, Mexico, and Brazil.
Former President Joe Biden later negotiated duty-free quota agreements with the United Kingdom, the European Union, and Japan. However, Trump’s latest policy shift leaves uncertainty over whether these exemptions and quotas will remain in place.
