Gold experienced a surge of over 2% on Wednesday as newly implemented US tariffs fueled risk aversion and increased speculation regarding Federal Reserve rate cuts amid growing recession concerns. The price of gold (XAU/USD) rebounded from below $3,000 to approximately $3,050, reaching $3,045 at the time of writing, following the enactment of tariffs by the United States. Initial market optimism regarding a potential 90-day tariff suspension, reported by various news outlets, was subsequently dismissed by the White House. Analysts attribute gold’s resurgence to heightened investor apprehension concerning tariff implications and the potential disruption of global trade structures. Gold is perceived as a reliable hedge against economic instability. Market expectations of increased volatility are also prompting speculation that the Federal Reserve may accelerate interest rate reductions to mitigate recessionary risks. Lower interest rates are generally favorable for gold, as it does not yield interest.
