Gold Prices Soar Amid Tariff War Fears; Stocks and Crypto 'Downcast'

# Gold Prices Surge to Record High Amid Trump Tariff Threats and Slowing Inflation [Wall Street Journal] The price of gold has soared to an all-time high of $2,990 per ounce, driven by tariff threats from President Trump and easing inflation. As international trade tensions escalate, investors are flocking to the safe haven of gold, while the stock market and digital assets are losing upward momentum. On the New York Mercantile Exchange, April gold futures closed at $2,991.33 per ounce, up 1.5% from the previous day. Intraday, the price even touched $3,000.3 per ounce, setting a new record. According to Goldprice data, gold prices hovered around the $2,920 mark at the beginning of the month, dipped to $2,893 on the 10th, and then rapidly rebounded. Analysts attribute this surge to investor expectations of a Federal Reserve rate cut due to slowing U.S. inflation and the impact of President Trump’s tariff policies. The U.S. Bureau of Labor Statistics reported on the previous day that the Consumer Price Index (CPI) rose 2.8% year-over-year, below market expectations of 2.9%. This deceleration in inflation has increased the likelihood of a rate cut by the Federal Reserve, contributing to the rise in gold prices. Generally, rate cuts favor gold, which does not provide inherent returns. Contrary to the gold market, the stock market continued its downward trend. According to Investing.com, the S&P 500 entered a 10% correction on the 13th, wiping out approximately $5 trillion in market capitalization since its peak in February. Intensifying international trade conflicts have dampened investor sentiment. On the same day, President Trump announced a 200% tariff on European wines and related products and reiterated his stance on maintaining newly imposed tariffs on steel and aluminum, further unsettling investors. While funds are flowing into gold, the digital asset market has seen a 19% decrease in overall market capitalization over the past month. According to CoinMarketCap, the total market cap dropped from $3.29 trillion on March 14 to $2.67 trillion today, representing an outflow of nearly $1 trillion. During the same period, Bitcoin, a major digital asset, declined 19% from 147 million won on February 15 to 120 million won, according to Upbit. Despite the outflows from the stock and digital asset markets, most banks are optimistic about gold. Macquarie Group predicts that gold prices could rise to $3,500 per ounce in the second quarter. BNP Paribas forecasts that the average gold price will stay above $3,000 per ounce throughout the period.