US President Donald Trump's policies to continue boosting gold prices — Kitco News

Gold prices have surpassed $3,050 an ounce and continue to climb in light of global economic uncertainty sparked by US President Donald Trump's trade policies. Earlier, he announced 25% tariffs on imported automobiles, Kitco News reports.

Some analysts believe the US leader is rushing to impose duties as part of a broader framework to overhaul the global financial and trading systems. Trump's goal is also to weaken the dollar to support domestic production and the economy, the agency notes.

However, the proposed strategies run counter to one another, according to Kitco News experts. A slowdown in US economic growth or even a recession may eventually be necessary to weaken the dollar. In such conditions, gold is in high demand as a means of hedging risks.

The US administration may also sell its gold reserves and use the proceeds to buy other currencies. These measures will affect the reserves of emerging market central banks and will contribute to an increase in gold prices, says Stephen Miran, chairman of Trump's Council of Economic Advisors.