Gold best performer amid Trump's trade decisions

Gold outperformed all major asset classes since US President Donald Trump took office on concerns over a trade war and its potential effects on global growth, which increased demand for the metal as a safe-haven asset.

As Trump imposed tariffs, gold prices saw consecutive weekly gains this year, reaching a record high of $2,942.7 per ounce, driven by a weakening US dollar.

Although gold prices declined last Friday, they remained up about 7% since Trump’s inauguration on Jan. 20. In comparison, the US stock index S&P 500 rose by less than 2% during the same period, while the dollar and Bitcoin saw declines.

Higher tariffs have a greater impact on global trade and tend to benefit gold, the Financial Times reported, citing James Steel, a precious metals analyst at HSBC.

Additionally, Trevor Greetham, Head of Multi Asset at Royal London Asset Management, emphasized gold's role as a geopolitical hedge, as well as a hedge against inflation and the US dollar.

Gold prices were supported by rising inventories on the New York Mercantile Exchange (NYMEX), which have surged 116% since the election, as traders and banks hurried to transfer the yellow metal from London, the world's largest gold trading hub, to the US.