Market Analysis by Antonio Di Giacomo, Financial Markets Analyst for LATAM at XS
February 11, 2025 –
“Gold prices reached a new historical high on Monday, February 10, 2025, driven by increasing demand for the metal as a safe haven. This rise follows President Donald Trump’s announcement of new trade tariffs. Despite the strengthening of the U.S. dollar, gold has seen a rise of over 2% this week, reaching the $2,918.00 per ounce mark.
Trump’s announcement includes a 25% tariff on aluminum and steel imports, along with reciprocal measures aimed at matching taxes imposed by other countries. This move has caused concern in financial markets and heightened fears of a potential global trade war. China has responded with retaliatory measures to U.S. tariff policies.
The economic uncertainty generated by these events has strengthened gold’s position as a safe-haven asset. In times of instability, investors tend to channel their capital into the precious metal, contributing to its rapid appreciation. Gold has gained over 11% year-to-date, setting consecutive historical highs.
Speculation suggests that the escalation of trade tensions could slow global economic growth and lead to increased inflation. The imposition of tariffs not only impacts the directly affected industries but also has a ripple effect on production costs and the final prices of products. This scenario has led investors to seek safer alternatives in the financial markets.
Despite optimistic projections for the value of gold, some economists note that volatility could persist in the short term. While demand for the precious metal has risen, factors such as the Federal Reserve’s monetary policy and the evolution of trade tensions will influence its future price. Decisions made by governments and financial bodies will be crucial in determining the market’s direction.
In this context, investors remain alert to new developments in trade and politics. Global uncertainty has reinforced the importance of gold as a safe asset, solidifying its role in times of economic crisis. As long as tensions persist between the world’s major economies, the precious metal could continue to hit new highs.
In conclusion, the recent record in gold prices reflects market concerns about U.S. trade policies and international reactions. The uncertainty caused by the new tariffs and retaliatory measures has led investors to seek refuge in safe assets, driving the value of the precious metal. Although projections indicate the potential for this trend to continue, gold’s future will depend on the evolution of the global economy and the political decisions made in the coming months.”
Analysis by Antonio Di Giacomo, Financial Markets Analyst for LATAM at XS.