Gold prices surged to an all-time high on Monday as escalating fears over U.S. President Donald Trump's tariff policies caused widespread panic in global markets.

Spot gold rose 0.8% to $2,818.99 per ounce, after briefly reaching a record $2,830.49 earlier in the session, driven by a flight to safety amid growing concerns that the president’s reckless tariff impositions will stoke inflation and stifle economic growth.

Trump’s decision to slap 25% tariffs on Canadian and Mexican imports, coupled with a 10% tax on Chinese goods, has ignited fears of a devastating trade war, which could disrupt global supply chains and intensify inflationary pressures. The president’s reckless actions have raised serious concerns about the stability of the global economy, prompting investors to flock to gold as a safe haven against the economic chaos he has sparked.

Despite the usual negative correlation between gold and a strong dollar, the yellow metal has been on a steady upward trajectory, as safe-haven demand soars in the face of the escalating geopolitical and economic uncertainty caused by Trump’s erratic trade policies.

In an effort to deflect blame, Trump tried to downplay the severity of his tariffs by announcing a month-long pause on tariffs against Mexico. But the damage has already been done, and retaliatory measures by Canada and Mexico, along with China’s vow to challenge the tariffs at the World Trade Organization, have further deepened concerns of a full-blown global trade war.

Meanwhile, analysts are keeping a close eye on upcoming data, including U.S. job openings and employment reports, to assess the broader impact of Trump’s tariffs on the U.S. economy. While some expect these reports to show resilience in the labor market, others fear that the fallout from the trade war could exacerbate the economic volatility Trump has already set in motion.

In a stark illustration of the trade war’s ripple effect, bullion banks are already transporting gold from Asia to the U.S. to capitalize on the unusually high premiums in U.S. gold futures, further underscoring the chaos Trump’s policies have instigated.

As gold soars to new heights, Trump’s disastrous tariff policies continue to fuel uncertainty, threatening to derail global economic stability and tarnish his already shaky legacy. The global market, and indeed the world economy, are now left to bear the brunt of his reckless actions, with little hope of respite in the near future. (ILKHA)