Gold Prices Near $3000, Outpacing US Equities As It Hits A Fresh Record High Amid Trump's Trade War-Led Market Uncertainty

The Gold Spot US Dollar index reached a record high of $2,907 per ounce, on Monday, surpassing the U.S. equities by 1.6% over the past 24 years. This surge comes amid increasing market uncertainty driven by President Donald Trump's ongoing tariffs and trade negotiations.

What Happened: Gold prices neared the $3,000 mark on Monday after Trump announced over the last week that he would be implementing ‘reciprocal tariffs' that would take effect this week. He also spoke about levying 25% tariffs on steel and aluminum imports on Sunday.

According to the data shared by the Indian brokerage firm Zerodha's co-founder, Nikhil Kamath, only 11% of U.S. equities beat the gains in gold prices over 24 years.

While U.S. equity returns stood at 7.8% over the said period, gold registered a 9.4% rise, thus outpacing U.S. markets.

The crazy thing about gold is these returns are on back of significantly lower volatility… pic.twitter.com/zDksLbWXid

— Nikhil Kamath (@nikhilkamathcio) February 10, 2025

Economists, Peter Schiff and Mohamed A El-Erian also highlighted the freshly scaled records in the following X posts.

I woke up early this morning to see gold up over $45, trading above $2,906—a new record high above $2,900 for the first time. I'm going to try to go back to sleep for another hour. I wonder where gold will be trading when I wake up, or if gold stock investors will wake up too?

— Peter Schiff (@PeterSchiff) February 10, 2025

For the reasons discussed a while ago here and elsewhere, the surge in gold prices continues with another record high above $2,900 this morning.#markets #investing #investors #gold pic.twitter.com/edribUpHyn

— Mohamed A. El-Erian (@elerianm) February 10, 2025

See Also: Tariffs Are ‘The Only Way’ To Fund Tax Cuts Without ‘Deficit Expansion’, Argues Expert As It Takes Center Stage In Donald Trump’s Economic Plan

Why It Matters: According to the LinkedIn post by Amjad Hussain, Financial Advisor at Financial Freedom Consultant, UAE, "Trump's aggressive stance on international relations is adding uncertainty to global markets, driving investors towards safe-haven assets like gold.

Although Trump had temporarily suspended the original tariffs on Canada and Mexico, he renewed his threats on Sunday, specifically targeting metals during his media remarks.

While traveling to New Orleans for the NFL Super Bowl, Trump spoke with reporters aboard Air Force One on Sunday. He shared plans to announce new tariffs on Monday, with reciprocal tariffs set to follow on Tuesday or Wednesday, aligned with the rates imposed by other nations.

Price Action: During the premarket trading on Monday the exchange-traded fund tracking the S&P 500 index, the SPDR S&P 500 ETF Trust SPY rose 0.47% to $603.60 and the ETF tracking Nasdaq 100 index, Invesco QQQ Trust, Series 1 QQQ advanced 0.71% to $526.63. The two-year Treasury notes yielded 4.28% and the 10-year notes yielded 4.49%.

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