CNN reported that the price of gold reached the historic milestone of 3.005 USD/ounce on March 14, although then dropped to less than $ 3,000/ounce.
World gold price set up a historic milestone on March 14 amid global instability
The strong increase in gold price is one of many signals that investors are concerned about the US economic scenario, according to former US Finance Minister Larry Summers. According to the Minister, the increase in gold price is a signal of uncertainty. “That’s what people do when they are not confident in the people who are managing the country,” Summers said.
On March 12, the US started collecting 25% tax for all imported aluminum and steel, resulting in a quick response from Canada and the European Union (EU).
On March 13, Mr. Trump also threatened to tax 200% on alcoholic drinks from the EU unless the alliance withdrew the 50% tax rate on the US alcohol one day ago.
The tariff Mr. Trump applied to the imported metal, the EU quickly retaliated
The White House trade policy has led to uncertainty to paralyzing businesses because they do not know whether to invest at this time. These factors increase concerns about a global economic recession.
Besides, the conflict in Ukraine is also a factor that makes the price of gold. On March 13, Russian President Vladimir Putin said supporting ceasefire, but raising many questions about American proposals, and providing conditions that could hardly be accepted by Ukraine.
Russia’s move may be considered to be opposition, raising geopolitical instability. The prospect of a long -term conflict reinforcement in the long term.
Senior investor Trevor Greenamam at Royal London Asset Management (UK) said that the current gold price is 60% higher than when Russia started military campaign in Ukraine in 2022. This year, gold has increased the price of nearly 14%, partly due to concerns from the impact of the tariff battle between the US and other countries, which leads to recent stocks in the stock market, according to the stock market, according to Reuters.
“The central banks, including the People’s Bank of China, have added their gold reserves instead of accepting the risk of confiscation of foreign reserves as happened to Russia,” Greenamam said.
