Gold prices are climbing as investors look for safer investments ahead of a major announcement about new U.S. tariffs.
On April 2, 2025, the price of gold increased by 0.4%, reaching $3,123 per ounce. Gold futures (contracts that predict future prices) also rose by 0.6%, hitting $3,166.
The main reason for this jump? Investors are nervous about what President Donald Trump’s new trade tariffs will mean for the economy. Trump is expected to announce these tariffs later today at a White House event. He calls it "Liberation Day," saying the new tariffs will make U.S. trade policies more equal with other countries.
Tariffs can make imported goods more expensive, which can lead to higher prices overall (inflation). When inflation rises, gold tends to become more valuable because people see it as a safe place to store their money.
Market experts say if Trump’s tariffs are stricter than expected, we could see even higher gold prices. On the other hand, if the tariffs are not as tough, the market could adjust, and prices might settle down.
Analysts believe gold could continue to rise if it breaks through key price points. If prices go beyond $3,150, gold might hit $3,200 soon, and possibly even $3,300 or $3,500 in the future.
In addition to tariffs, recent job data has influenced the market. A report showed that U.S. companies hired more workers in March than expected. Investors are also waiting for another jobs report coming this Friday, which could give more clues about where the economy is headed.
For now, gold remains a popular choice for investors looking for stability in uncertain times.