2025-02-01
Gold prices have reached new record highs as global uncertainty increases. Following Donald Trump's latest threat of high tariffs on BRICS countries and the introduction of new trade barriers against Canada, Mexico and China, investors have sought gold as a safe haven.
Gold price reaches new heights
In the past week, the price of gold has risen by 150 baht per baht weight in Thailand and has now reached 45 baht per baht weight. In the international market, the price of gold has increased to over 100 USD per ounce. This rise reflects growing concerns about global trade tensions and political uncertainties.
Trump's tariff threat creates market anxiety
In a new move, Donald Trump has warned of imposing 100% tariffs on imports from the BRICS countries if they go ahead with their plans to create an alternative currency and reduce reliance on the US dollar. This has caused the market to react strongly, as an escalating trade conflict could affect the global economy and reduce confidence in traditional currencies.
In addition to the threat against BRICS, Trump has also announced that the US, starting today, will impose:
- 25% tariffs on imports from Canada and Mexico
- 10% tariffs on Chinese goods
These measures have led to backlash from the affected countries, with Canada and Mexico warning of retaliatory measures and China expressing concerns about global trade relations.
Why is the price of gold affected?
Gold is traditionally considered a safe investment during times of uncertainty. When investors worry about economic crises, inflation, and currency fluctuations, demand for gold increases, driving up its price. The following factors have influenced the recent increase in gold prices:
- Trade conflicts: New tariffs and threats of escalating conflicts are creating instability in the world economy.
- Interest rate expectations: If central banks react by lowering interest rates to counter economic turbulence, gold becomes more attractive because it does not pay interest.
- The BRICS currency issue: If more countries reduce their dependence on the US dollar, investors may shift capital to gold as a more stable asset.
What happens next?
Analysts are warning that gold prices could continue to rise if global uncertainty persists. If the trade war escalates further or if the BRICS countries make progress on an alternative currency, we could see even higher gold prices in the future. At the same time, the market will be closely watching how central banks, including the Federal Reserve and the Bank of Thailand, respond to the economic turmoil.
For investors, this could be a signal to consider gold as part of a diversified portfolio, but it is also important to follow developments closely to understand the long-term effects of these global changes.
Sources:
Text: The editorial staff
Image license: soofiatailor, Pixabay, original image