By Ryan Dezember
President Trump's affinity for gold is well known. Gold owners and producers are probably appreciating the turmoil his zigzagging trade policies have brought to markets, which have lifted the price of the precious metal to new highs.
May Gold futures added 2.2%, or $71.30 a troy ounce, Friday to settle at $3363.60 after Trump threatened in social media posts to punish the European Union and iPhone maker Apple with steep tariffs. That rattled markets anew and induced another bout of gold buying.
Roughly 0.5% of global gross domestic product-the value of all goods and services produced across the world economy-is now being spent on gold, according to Citigroup analysts. That's the greatest portion in 50 years of data, the bank says. Gold miners' margins, which have surged to around 100%, are also the highest in a half-century, the bank said.
Besides serving as a haven for investors unsure where else to put their money right now, central banks have been hoarding gold in an attempt to diversify away from dollar-based assets that can be sanctioned.
It has helped too that despite all the uncertainty and fear that Trump's trade war will slow global growth, there has been no recession in China and India to reduce jewelry demand, Citi says.
The bank says it expects strong demand to keep gold prices aloft through the third quarter but is cautious on prices thereafter.
This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).
(END) Dow Jones Newswires
May 23, 2025 15:10 ET (19:10 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Comments