Gold Surges Past $3,000, Approaching Best Quarter Since 1986

Gold prices soared above $3,000 per ounce, marking a record high and heading for their strongest quarterly performance since 1986, driven by safe-haven flows amid trade tensions. US President Trump’s new 25% tariff on auto imports rattled global automakers, wiping out nearly $20 billion in value from Japan’s top three carmakers and prompting firms like Ferrari and Hyundai to raise prices or shift production. US stocks dipped modestly on Thursday, while Tesla remained relatively unaffected due to its domestic production focus.

Equities

The FTSE 100 fell 0.3% on Thursday, dragged down by losses in mining and auto stocks following President Trump’s announcement of a 25% tariff on all foreign-made vehicles and auto parts. The FTSE 250 declined by 0.6%. Shares in Aston Martin slumped 6.7% to a record low, hit hard by the tariff news, with the US being a key market for the luxury carmaker.

UK Finance Minister Rachel Reeves said Britain was in talks with the US to secure an exemption and was also reviewing subsidies granted to Tesla. Industrial metal miners were also under pressure as copper prices dropped, reflecting concerns about weaker demand. Anglo American fell 6%, Glencore lost 3.5%, Antofagasta declined 2.8% and Rio Tinto dropped 1.4%.

Fashion retailer Next jumped 10.5% after raising its full-year profit forecast and reporting profits above £1 billion for the first time. Oil producer EnQuest climbed 14.7% after announcing its first-ever final dividend and an annual profit. IAG, the owner of British Airways, slipped 1.6% after its CEO said the firm may sell its 20% stake in Air Europa.

In the US, the S&P 500 lost 0.33%, the Dow dropped 0.37%, and the Nasdaq fell 0.53% as investors reacted to the auto tariff news. General Motors tumbled over 7% and Ford dropped 3.9% following Trump’s announcement that car tariffs would begin on 3 April, with auto parts to follow on 3 May. Car parts suppliers Aptiv and BorgWarner also declined around 5% each. In contrast, Tesla edged up 0.4%, with investors noting its US-based production would likely reduce the impact of the new levies.

Apple rose 1.05%, helping limit broader index losses, while Advanced Micro Devices fell after a broker downgrade. The number of Americans filing new jobless claims fell slightly to 224,000 last week, while Q4 GDP growth was revised up to 2.4%. Dollar Tree surged 11% after analysts upgraded the stock in response to the company’s plan to sell its struggling Family Dollar business for $1 billion.

Forex & Commodities

The US dollar held steady but is set for a quarterly loss, as falling Treasury yields and trade uncertainty weighed on the currency. At $1.2940, the British pound was flat in Asian trading, holding a gain of 3.5% year-to-date. The euro, just below $1.08, has risen over 4% in 2025, supported by a rally in German yields and easing geopolitical risks. The Japanese yen edged higher to 151.19 per dollar, while Sweden’s and Norway’s currencies were the best G10 performers this quarter, up nearly 11% and 9% respectively. The Canadian dollar has gained 0.5% this year to C$1.4306, despite bearing the brunt of US tariffs.

Gold prices reached a new record on Thursday, with spot gold climbing to $3,059.30 and US gold futures settling at $3,061 after hitting $3,071.30 earlier in the day. Safe-haven demand surged following President Trump’s announcement of a 25% tariff on imported vehicles, set to begin on April 3. Goldman Sachs raised its end-2025 gold price forecast to $3,300 per ounce, citing strong ETF inflows and persistent central bank demand. Silver also gained 1.7% to $34.27 an ounce, reaching its highest since October, while platinum and palladium both moved higher.

Oil prices held near one-month highs, with Brent crude down slightly at $73.89 a barrel and WTI at $69.80, though both benchmarks are up more than 2% this week. Supply concerns were fuelled by US sanctions targeting oil trade with Venezuela and Iran, alongside a larger-than-expected 3.3 million barrel draw in US crude inventories. Markets now await the US core PCE inflation data due Friday, with a reading below the forecasted 0.3% month-on-month rise likely to put further pressure on the dollar.