Gold prices soared past the $3,200 mark as the U.S. dollar weakened on Friday, amid growing economic uncertainty induced by Trump’s tariffs.
Spot gold prices rose 1.7% to $3,226 an ounce. The surge comes as the dollar index (DXY) fell to a three-year low.
Gold prices initially dipped by nearly 5% after President Donald Trump announced that the ‘Liberation Day’ tariffs would go into effect from April 2. However, since then, the yellow metal has rallied by more than 8% to set a new record high on Friday.
The rally comes as JPMorgan Chase & Co. CEO Jamie Dimon and other billionaires have voiced their concerns about Trump’s tariffs and their impact on the economy.
While Dimon stopped short of predicting a recession, he projected that analysts could begin announcing a potential contraction in S&P 500 earnings as early as “next month.”
Dimon also warned of “considerable turbulence” for the U.S. economy.
At the same time, BlackRock CEO Larry Fink said the U.S. is very close to a recession.
“I think you’re going to see, across the board, just a slowdown until there’s more certainty. And we now have a 90-day on the reciprocal tariffs — that means longer, more elevated uncertainty,” he said on Friday.
While Dimon thinks companies could pull their guidance, Fink says economic uncertainty and anxiety are already figuring in conversations with clients.
Republican megadonor and Home Depot co-founder Ken Langone and billionaire hedge fund manager Bill Ackman also voiced their concerns with Trump’s tariff policies.
“I don’t understand the goddamn formula,” said Langone.
Amid recessionary concerns, weakness in the U.S. dollar has confirmed the potential “dollar confidence crisis,” according to analysts at ING Bank NV.
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