A surge in demand for physical gold has overwhelmed New York markets, driving gold prices to record highs. The increasing uncertainty surrounding President Donald Trump’s proposed tariffs has intensified a rush for gold and silver, as savvy investors scramble to secure metal before potential price spikes.
Gold prices on Comex reached an all-time high, with April futures peaking at $2,853.20 per ounce, according to Dow Jones Market Data. Analysts predict that if a 25% tariff on imported gold is imposed, prices could soar beyond $3,500 per ounce. Peter Spina, founder of GoldSeek.com, described the situation as a “physical gold rush,” with buyers struggling to source gold before costs escalate.
The silver market faces even greater challenges, as most of the U.S. supply is imported from Mexico and Canada. With looming tariff implementation, shortages could worsen, driving prices up sharply. Those who have short positions in physical metals are now rushing to acquire supplies before potential overnight price hikes.
Another key indicator of market stress is the widening price spread between London’s spot gold price and New York futures. This gap reflects growing concerns that tariffs could be applied to gold and silver imports, exacerbating supply constraints. Stefan Gleason, CEO of Money Metals Exchange, noted that fears of tariffs on precious metals from China, Canada, and Mexico are further fueling demand.
With tariffs on Canada and Mexico set to take effect, investors are bracing for major shifts in the gold and silver markets. The urgency to secure physical bullion is at an all-time high, as uncertainty continues to drive gold’s growing appeal as a safe-haven asset. This may be a signal for those wanting to protect their portfolio to give gold a second look as a long-term financial vehicle.
