The Great Financial Fiasco: How Trump’s Tariffs Rocked Gold Cities

by

What to know:

  • In a shocking twist befitting a Greek tragedy, gold fell from its golden pedestal after hitting a record high. The stage? A market behaving like a caffeinated squirrel on Trump’s whimsical tariffs.
  • Global equities tumbled on Thursday, unleashing a chaos that forced investors to sell their precious metal to raise the necessary coins—like a medieval knight selling his sword for a loaf of bread.
  • Central banks, playing the role of modern-day dragons hoarding gold, bought more in February—most notably from Poland and China, who seem to have a penchant for shiny things.

Meanwhile, gold-backed cryptocurrencies, such as Paxos Gold (PAXG) and Tether Gold (XAUT), decided to retreat from their Olympus of record highs amid a global financial stampede, erasing a staggering $2.5 trillion from U.S. equities in a single day. All thanks to President Trump unveiling his ‘reciprocal tariffs’—a phrase as enticing as lukewarm porridge.

As these tokens, parading as brave knights backed by the shining bullion, sought refuge from the chaos, gold, the ever-reliable lifeboat of investments, appeared to wane under this torrential downpour of market volatility. Like a flock of startled pigeons, investors were forced to liquidate their safe havens to cover margin calls and avoid financial ruination.

PAXG soared to an impressive height of $3,191, with XAUT dancing in its shadows at $3,190—both momentarily eclipsing spot gold’s peak of $3,167. Yet, just like a passing summer rain, this rise was fleeting, leaving PAXG sinking to $3,074 and XAUT to $3,064, mimicking gold’s own descent to $3,038 per ounce.

The tariffs, bold and unpredictable as a cat on a hot tin roof, spooked the already jittery markets. Investors, resembling bobbleheads on a car dashboard, responded swiftly to the shock. The S&P 500, valiantly veering into the abyss, posted one of its steepest drops since the pandemic panic of 2020. On the other hand, the Nasdaq 100 experienced a dramatic point loss—perhaps crying out for a comforting hug.

Yet even in this maelstrom, gold-backed tokens remain 17% higher since the dawn of the year, like a contestant in a bizarre reality show that refuses to be eliminated. This rally, driven by Federal Reserve interest-rate cuts and continued demand from Asia, showcases the whimsical nature of these financial theatrics. In February, central banks flaunted net gold purchases of 24 metric tons, as reported by the World Gold Council, which feels like a badge of honor in the chaotic world of finance.

Leading the parade was Poland, adding 29 tons to its treasure trove, now proudly displaying 480 tons—20% of its foreign exchange holdings. Meanwhile, China, Turkey, Jordan, and Qatar joined this glittering gold rush, ensuring they too would be part of the gold-holding elite.

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2025-04-04 18:55