Weekly Market Update February 11 Tariffs Are Back

Over the past week, global economic and geopolitical developments have significantly influenced the gold market. A key catalyst was President Donald Trump's Super Bowl Sunday announcement of a 25% tariff on all steel and aluminum imports, including those from Canada, heightening fears of a renewed global trade war. This uncertainty has driven investors toward gold as a safe-haven asset, pushing prices to consecutive record highs. Spot gold surged to an all-time peak of USD $2,942.70 per ounce during Tuesday's Asian trading session, reflecting strong demand amid market instability.

Beyond investor demand, central banks have continued to accumulate gold, marking the 15th consecutive year of net purchases. In 2024 alone, global central banks acquired over 1,000 metric tons of gold, reinforcing its role as a strategic reserve asset in uncertain times. 

Financial analysts, including those at Goldman Sachs, anticipate further gains, with some projecting gold could reach $3,000 per ounce by year-end. These bullish forecasts are driven by sustained central bank buying and expectations of U.S. interest rate cuts, which would enhance gold’s appeal as a non-yielding asset. As economic uncertainty persists and geopolitical tensions remain high, gold’s role as a hedge against risk continues to strengthen.