Trump's new tariff measures trigger risk aversion sentiment, gold prices continue to rise

2026-02-23 03:58:20

Investing.com - Gold prices rose for the fourth consecutive trading day on Monday, continuing last week’s gains, as new global tariffs announced by U.S. President Donald Trump and recent U.S. economic data boosted safe-haven demand.

As of 19:53 Eastern Time (00:53 Beijing Time), spot gold increased 0.8% to $5,143.55 per ounce. U.S. gold futures rose 1.7% to $5,165.86.

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Last week, gold prices rose over 1%, driven by geopolitical tensions between the U.S. and Iran that sparked market risk aversion.

President Trump stated last week that, following the Supreme Court’s rejection of a broader tariff system earlier, he would impose a 10% tariff on all global imports under Section 122 of the U.S. Trade Act for 150 days.

Subsequently, the government increased the tariff rate to the maximum allowed by the law, 15%, heightening concerns over retaliatory measures and potential disruptions to global supply chains.

The tariff announcement dampened risk appetite, prompting investors to shift toward traditional safe-haven assets like gold and U.S. Treasuries. Uncertainty about the duration and scope of the tariffs, along with potential legal and congressional challenges, further fueled market volatility.

Gold also found support from recent U.S. economic data released last week. U.S. GDP growth in the fourth quarter was 1.4% annualized, significantly slower than the previous quarter.

Meanwhile, the Federal Reserve’s preferred inflation indicator, the Personal Consumption Expenditures Price Index, showed December prices rose 2.9% year-over-year, with core inflation around 3.0%, still above the Fed’s 2% target.

The combination of slowing economic growth and persistently high inflation has strengthened gold’s appeal as a hedge against economic uncertainty and a store of value.

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