Trump's Tariff Threats Spark Demand for Gold

Gold prices rose in local markets during trading on Thursday, with the ounce rising on the global stock exchange amid growing risks of a US economic recession and political uncertainty.

Gold prices rose by about 40 Egyptian pounds during trading today, compared to the close of trading yesterday. The price of a gram of 21-karat gold reached 4,320 Egyptian pounds, while an ounce rose by about $21, reaching $3,041.

A gram of 24-karat gold reached 4,937 Egyptian pounds, a gram of 18-karat gold reached 3,703 Egyptian pounds, while a gram of 14-karat gold reached about 2,880 Egyptian pounds, and the gold pound reached about 34,560 Egyptian pounds. Gold prices in local markets rose by EGP 5 during trading on Wednesday, with the price of a gram of 21-karat gold opening at EGP 4,275 and closing at EGP 4,280. Meanwhile, the price of an ounce on the global stock exchange stabilized, opening at $3,020 and closing at the same level.

Gold continued to rise this week, supported by growing recession fears and strong demand for safe haven assets. Trump's aggressive trade rhetoric renewed concerns about economic stability, with uncertainty rising, as investors turned to gold as a hedge.

President Donald Trump signed a proclamation imposing a 25% tariff on auto imports and imposed additional tariffs on the European Union and Canada, expanding the trade war and sparking threats of retaliation. A CNBC survey showed that 60% of U.S. CFOs now expect a recession by the end of the year—up from just 7% in the last quarter—with trade policy uncertainty the top external threat.

This gloomy outlook has led to a decline in corporate spending, with only 35% of CFOs planning to increase capital expenditure this year. Additionally, 95% of CFOs acknowledge that political uncertainty is impacting decision-making. Risk appetite in equities continues to decline, while flows into gold accelerate.

Meanwhile, yesterday's Conference Board U.S. consumer confidence index fell to a four-year low in March, driven by concerns about escalating trade wars and rising prices.

Gold has risen more than 15% since the beginning of the year, most recently hitting an all-time high of $3,058 per ounce on March 20. Although the Federal Reserve left interest rates unchanged last week, accommodative guidance suggests the possibility of rate cuts later this year. Federal Reserve Governor Adriana Kogler noted that inflation has stalled, reinforcing expectations for prolonged interest rate cuts.

Goldman Sachs raised its gold price forecast to $3,300 by the end of the year, citing stronger-than-expected demand from central banks and strong inflows into bullion-backed exchange-traded funds.

With rising recession fears, rising policy risks, and stable real interest rates, gold's appeal as a store of value continues to rise.

Unless Friday's inflation data significantly disrupts Fed rate cut expectations, the gold price outlook remains strongly positive, with further gains likely in the near term.