Gold historically has performed poorly when tariffs are high, and vice versa. It’s an important counter to the increasingly widespread narrative that higher tariffs are bullish for gold.

Investors are typically drawn to gold because of its diversification benefits and track record of being a hedge against inflation. Gold prices often rise during periods of economic turmoil, such as during the 2008 financial crisis or the collapse of Silicon Valley Bank in 2023.

Escalating trade tensions between the US and China have paved the way for increased safe-haven inflows. This has benefited gold prices, and experts believe that the yellow metal is within touching distance of breaching the $3,