Central Banks Boost Gold Buying Amid Dollar Decline, Tariff Uncertainty

Gold and silver markets are experiencing notable dynamics amid geopolitical tensions and U.S. trade policies under President Trump's administration. The price of gold recently surged to over $3,376 per ounce, driven by escalating tariffs on goods from Europe, Canada, and Mexico, though it faces resistance around $3,300 to $3,500 amid mixed technical signals and potential Federal Reserve interest rate decisions. While gold remains a favored hedge against uncertainty, strong U.S. labor data and a possible dollar rebound could limit further gains. The U.S. dollar has weakened significantly against major currencies, prompting central banks to reduce dollar reserves and increase gold holdings, reflecting shifting global confidence. Meanwhile, the World Gold Council warns that although gold is not currently subject to U.S. import tariffs, it remains a possibility given the administration's focus on critical minerals. Additionally, mining companies such as Dakota Gold are revitalizing historic U.S. gold deposits, reflecting ongoing interest in domestic resource development.