Investors flock to gold funds over Trump tariff fears

Author: Leslie Hook and Ian Smith in London
Source: Financial Times
Published: April 1, 2025

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Investors are pouring cash into gold funds at the fastest pace since the Covid-19 pandemic amid mounting concerns over the economic impact of US President Donald Trump’s tariff war.

Gold reached a record $3,148.88 a troy ounce on Tuesday, as part of a broader flight to haven assets such as US Treasuries and cash. It later fell back to $3,109, up more than 18 per cent this year — including its strongest quarterly performance since 1986.

Investors are bracing themselves for Trump’s expansive new tariffs, which are due to be announced on Wednesday, a day he has dubbed “liberation day”. Many economists fear the move will hit global growth, triggering a search for safe assets.

“Uncertainty is one of the main factors that has led to a renewed interest in gold,” said Krishan Gopaul, senior analyst at the World Gold Council, an industry body. “There is a general risk-off sentiment in the market at the moment.”

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