On June 2, 2025, gold prices soared by over 2%, reaching $3,353.69 per ounce from $3,287.93 at 9:57 a.m. Nigerian time, driven by heightened geopolitical tensions and renewed U.S. tariff threats under President Donald Trump. The precious metal’s safe-haven appeal strengthened amid a faltering U.S.-China trade truce, with mutual accusations of violating recent agreements escalating market uncertainty. Trump’s announcement to double steel and aluminum tariffs to 50%, effective June 4, prompted retaliatory warnings from Canada, further unsettling global markets. At the exchange rate of N1,579/$1, the price equates to approximately N5.3 million per ounce, highlighting gold’s value as a hedge in Nigeria’s volatile economic context.
Geopolitical developments, including Ukraine’s drone strikes on Russian airfields and Moscow’s prolonged assault on Kyiv, intensified ahead of peace talks, boosting gold’s allure. The U.S. dollar’s 0.5% decline against other currencies made gold more affordable for foreign buyers, supporting the rally. Despite a 2.5% drop last week to $3,273.19 per ounce after a U.S. court ruling limited Trump’s tariff powers, gold has rebounded, posting over 25% year-to-date gains. The ruling, which required congressional oversight for broad tariffs, sparked a brief risk-on rally, but ongoing trade and geopolitical risks restored gold’s momentum.
Analysts at Goldman Sachs project gold reaching $3,300 by year-end, citing robust central bank demand and its role as an inflation hedge alongside oil. Posts on X, such as from @Reuters, note the tariff escalation, while @WSBGold highlights Citi’s forecast of $3,500 in the next three months, reflecting strong investor sentiment. Gold’s 30% surge in 2024, fueled by central bank purchases exceeding 1,000 tonnes, underscores its resilience. As trade wars and conflicts persist, gold remains a vital asset for investors navigating global volatility, with potential to test $3,500 again if tensions escalate further.
