Gold price hits new record high as trade tensions escalate

The price of gold reached a new record on Thursday with an ounce trading at $2,983.50 at 1810GMT amid uncertainties caused by US President Donald Trump's trade policies.

The ounce of gold rose 1.68% on Thursday to set a new record.

The safe haven asset has gained around 10% since Trump took office on Jan. 20.

After starting 2025 at $2,620, it has gained around $358 in value since the beginning of the year, while setting new records 12 times this year.

While the ounce price of gold rose 27% in all of last year, so far this year it has already gained 14%.

Trump's tariff threats took effect on Wednesday, imposing 25% levies on all steel and aluminum imports.

On March 4, Trump also imposed 20% tariffs on China.

He also threatened to impose 25% tariffs on Canada and Mexico, but later postponed those tariffs after negotiations with the two countries' leaders.

Trump on Thursday threatened to impose 200% tariffs on alcohol drink imports from the EU unless the union withdraws a 50% tariff on American whisky.

The president's tariff threats continue to stoke fears of a further global trade war as countries vow to take retaliatory measures.