Gold saw a notable uptick around Donald Trump’s inauguration and his statements on potential tariff hikes — a fresh reminder of the metal’s status as a safe-haven asset during political and economic uncertainty.
The inauguration and its impact
A transition of power always brings uncertainty, but this one came with a sharper edge: rhetoric about reshaping trade policy. Concerns over the economic fallout of aggressive tariffs on key trading partners fuelled a flight to safety, with gold the preferred destination.
Tariff threats and market reactions
Renewed emphasis on significant tariffs raised fears of trade wars — disrupted supply chains, weaker growth — and prompted investors to hedge. Gold climbed roughly $45 per ounce in days, a 2.5% jump.
Adding to the uncertainty: proposed tariffs of 20% on aluminum and 25% on steel imports from Canada — measures with direct consequences for the Canadian economy and the loonie.
Canadian angle: tariff pressure on Canada tends to soften the loonie — and a softer loonie makes gold priced in CAD rise even faster than the global market.
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