It's official: Global trade wars are back and this time around, their back with more vengeance than ever before!
When Donald Trump won last year’s election, there was a sense among some western diplomats in Washington that their government knew how to handle a President who in his first term gained a reputation for being unpredictable and erratic.
Within Trump's first 50 days in office he has already stirred up more uncertainty in the global economy and financial markets compared to any other President in history.
It's fair to say that the world underestimated just how disruptive a Trump 2 Presidency would be.
Fast forward seven weeks to the present day and there’s no denying that Trump's hyper-focus on tariffs since taking office in January has rattled investor, consumer and business confidence – leading to a foregone conclusion that “A New Era of Stagflation Could Be On Way”.
Interestingly, “Stagflation” – the combination of a global economic slowdown and a resurgence in inflation – is one of the most searched terms on Google right now.
Concerns over Stagflation have come as President Donald Trump seems determined to slap tariffs on virtually anything that comes into the country at the same time that multiple indicators are pointing to a pullback in activity.
In his speech before Congress on 4 March, President Trump the self-proclaimed Tariff Man – declared he was only “just getting started”.
There are no prizes for guessing that Precious Metals like Gold, Silver, Platinum and Palladium tend to be the big winners in inflationary environments. Almost by definition, when inflation accelerates, so does the prices of Precious Metals.
You only have to take a look at the markets to realize that traders have already begun pricing in the dual threat of a resurgence in inflation and slower growth by dumping high-risk assets such as Equities, the U.S Dollar and Cryptocurrencies and in return – piling into Gold at one of the fastest paces seen since the Global Financial Crisis in 2008.
According to data tracked by GSC Commodity Intelligence – February saw a whopping $4.9 billion flow into Gold – the ever highest on record! In financial market terms, it almost seems as if, President Trump's “Make America Great Again” pledge has rapidly transformed into a “Make Gold Great Again” movement.
Whichever way you look at it, one thing is clear. Gold and Precious Metals as a whole – always perform the best under a Trump administration. And we still have another four more years to go of a Trump 2 Presidency!
That’s welcoming news for the bulls, but painful for anyone sitting on the sidelines, who must now decide how much FOMO they can handle.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
Trading has large potential rewards, but also large potential risk and may not be suitable for all investors. The value of your investments and income may go down as well as up. You should not speculate with capital that you cannot afford to lose. Ensure you fully understand the risks and seek independent advice if necessary.
Recommended Content
Editors’ Picks

AUD/USD holds steady above 0.6400 amid mixed cues
AUD/USD consolidates above the 0.6400 mark during the Asian session on Tuesday. Concerns about the rapidly escalating US-China trade war act as a headwind for the Aussie. The US Dollar languishes near a multi-year low amid the uncertainty over Trump's trade policies and the weakening confidence in the US economy.

USD/JPY recovers slightly from multi-month low; upside seems limited
USD/JPY ticks higher during the Asian session on Tuesday and recovers a part of the previous day's downfall to a fresh seven-month low, though any meaningful upside seems elusive. Trade war concerns, global recession fears, hopes for a US-Japan trade deal, and the divergent BoJ-Fed expectations should continue to underpin the JPY.

Gold price hits fresh record high amid the global rush to safety
Gold price touched a fresh all-time peak, around the $3,444-3,445 area during the Asian session on Tuesday amid worries that an all-out trade war could trigger a global recession. Doubt over Fed independence, which led to the overnight USD slump to a three-year low, and heightened Russia-Ukraine tensions act as a tailwind for the XAU/USD.

ARK Invest integrates Canada's 3iQ Solana Staking ETF into its crypto funds
Asset manager ARK Invest announced on Monday that it added exposure for Solana staking to its ARK Next Generation Internet exchange-traded fund and ARK Fintech Innovation ETF through an investment in Canada's 3iQ Solana Staking ETF.

Five fundamentals for the week: Traders confront the trade war, important surveys, key Fed speech Premium
Will the US strike a trade deal with Japan? That would be positive progress. However, recent developments are not that positive, and there's only one certainty: headlines will dominate markets. Fresh US economic data is also of interest.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.