Gold Price Initially Rises to Record High and Then Falls Sharply.
Gold Price Initially Rises to Record High and Then Falls Sharply.
Following President Donald Trump's announcement of sweeping 10% tariffs on foreign imports, gold prices surged to a new record high of $3,168 per troy ounce.
this peak was followed by a significant decline, with prices falling over $100 during the trading session.
Commerzbank's commodity analyst, Carsten Fritsch, observes that such initial surges followed by sharp corrections are typical in periods of high market volatility.
In times of heightened uncertainty, investors often liquidate gold positions to cover losses in other asset classes.
This behavior contributes to the initial sell-offs observed in gold prices.
Despite short-term fluctuations, gold remains a preferred asset during periods of economic and geopolitical uncertainty.
The recent tariff announcements have heightened fears of inflation and potential economic slowdown, driving investors towards gold as a hedge.
