Gold prices surged toward $2,900 an ounce this week, bolstered by escalating global trade tensions and a flight to safety as the U.S. ramped up tariffs on imports from Canada, Mexico, and China.
Investors piled into the precious metal, cementing its role as a haven amid fears of retaliatory measures and economic spillover, with critical support forming near $2,850. Traders note the metal’s resilience reflects deepening anxiety over fragmented trade policies, particularly as Canada and Mexico prepare to unveil countermeasures this weekend—a move likely to prolong market uncertainty.
“Gold’s rally isn’t just about tariffs—it’s a barometer for distrust in the global system,” said one New York-based metals trader. “Every headline out of Washington or Beijing sends fresh capital into bullion.” The metal’s climb underscores its dual appeal as both a hedge against inflation and a refuge from equity market volatility, with technical analysts flagging $2,900 as a key psychological threshold.
Meanwhile, oil markets spiraled lower, with Brent crude sinking below $72 a barrel as swelling supply and trade-driven demand fears collided. OPEC+’s decision to proceed with incremental production hikes—part of a broader strategy to unwind pandemic-era cuts—has amplified concerns of a glut, particularly as higher U.S. tariffs threaten to stifle economic activity and curb fuel consumption. Analysts warn the cartel’s output boost, coupled with softening refinery demand and rising inventories, could push prices toward the $60s in the coming weeks.
The divergence between gold’s rally and oil’s slump highlights the uneven fallout of trade wars: one asset thrives on chaos, while another buckles under its weight. With retaliatory tariffs looming and OPEC+ showing no signs of pausing its supply restoration, markets face a volatile summer defined by competing narratives of scarcity and surplus. As one energy strategist bluntly put it: “Gold’s dancing on trade nerves. Oil’s drowning in them.”
