Comment: Gold rallies due to economic uncertainty and Trump tariffs

Russel Shor, Tradu Analyst, commented: The market thrives on stability, yet uncertainty is running high right now. The imposition of tariffs has sparked concerns over stagflation—high inflation combined with low growth. We’ve already seen troubling signs, with the flash S&P Global Services PMI showing contraction, while the ISM Manufacturing PMI highlighted a decline in new orders, weakening employment, and rising prices.

In this environment, it’s no surprise that gold has started to shine once more as a safe haven. After a brief pullback in late February, the precious metal has rallied nearly 3% since its low on February 28. This surge comes as the 25% tariffs on Canada and Mexico, and an additional 10% on China, have taken effect. As uncertainty spiked, gold responded, climbing 11% year-to-date, while major indices have struggled and are in the red for the same period.