Following Trump's threats to impose tariffs, gold prices surged to a record high.

On Thursday, gold prices reached a historic high, surpassing $2950 per ounce. This surge occurred amid threats from U.S. President Donald Trump to impose tariffs on various goods and pharmaceuticals.

This information was reported by RBK-Ukraine citing Reuters.

On February 20, the spot price of gold rose by 0.1% to $2936.38 per ounce, and earlier during the session, it peaked at $2954.69, marking the tenth record of the year.

Gold futures in the U.S. increased by 0.7% to $2956.10. Overall, gold bars have risen by approximately 12% this year.

What's Happening with Other Precious Metals

The spot price of silver climbed by 0.6% to $32.92 per ounce.

Platinum increased by 0.7% to $978.05, while palladium rose by 1% to $978.02.

Why Gold Prices Are Rising

According to Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals, ongoing trade tensions "continue to fuel inflation and concerns about economic growth," leading to increased interest in gold.

Recently, Trump stated that he would announce tariffs on lumber, cars, semiconductors, and pharmaceuticals "within the next month or sooner."

It is also worth noting that after taking office on January 20, Trump imposed a 10% tariff on Chinese imports and a 25% tariff on steel and aluminum.

Minutes from the latest political meeting of the U.S. Federal Reserve on Wednesday, February 19, indicated that Trump's initial policy proposals raised concerns about inflation growth. This confirmed the central bank's position on refraining from further rate cuts.

According to Swiss customs data, gold exports from Switzerland in January increased compared to the same period last year, as shipments to the U.S. reached their highest level in 13 years.

Additionally, according to The Independent, due to American steel tariffs, Ukraine will lose a billion hryvnias annually.

Why People Buy Gold

Previously, RBK-Ukraine reported that gold is often purchased as a safe haven or investment for several reasons:

Protection against inflation. Gold is considered an inflationary safe haven because its price typically rises during periods of high inflation. This is due to gold being a limited resource with a restricted supply worldwide.

Geopolitical instability. Global events such as conflicts, economic crises, and political unrest can significantly impact currencies and financial markets. In such conditions, gold is viewed as a more stable asset.