Gold Has Really Skyrocketed—Could Trump Continue to Fuel the Surge?

On February 11, gold prices continued their record-breaking upward trend, first surpassing the $2900 mark, reaching a high of $2911.42 per ounce, and setting a new all-time high. Gold closed at $2907.92 per ounce, up about 1.6%.

The rise in gold prices was primarily driven by safe-haven demand, and U.S. President Trump's new tariff threats heightened concerns over trade wars and inflation, further pushing gold prices higher.

According to reports, Trump plans to sign two major tariff executive orders within 48 hours. First, he will impose a 25% tariff on all imported steel and aluminum, implementing what is called the “metal defense tax.” Second, Trump will launch a “mirror retaliation” plan targeting various countries. This series of trade offensives has been likened to throwing a depth charge into the global market, quickly triggering emergency responses from countries, and causing financial markets to become volatile.

Sources revealed that Trump is expected to sign the relevant executive orders later on Monday or Tuesday, which could increase the risks of multilateral trade wars and further exacerbate global economic uncertainty.

By adding another 25% tariff on steel and aluminum, Trump is creating a “tariff stacking effect.” This policy will further raise trade barriers, particularly in the areas of steel and aluminum imports.

Policy Impact

The U.S. dollar index may rise initially due to safe-haven demand, but as retaliatory tariffs weaken U.S. export competitiveness, the dollar could retrace some of its gains. In contrast, gold, as a safe-haven asset, will benefit from two advantages. The dual pressures of geopolitical risks and rising manufacturing costs could push gold prices beyond $3000 per ounce.

Additionally, global supply chains may be profoundly affected, with multinational companies potentially accelerating the “nearshoring” process, which would further drive up precious metal prices, creating a resonance between industrial and financial attributes.