Gold price crashes: Trump's tariffs and US debt cause crisis mood!

Gold price crashes: Trump's tariffs and US debt cause crisis mood!

Vienna, Österreich - On Thursday, May 29, 2025, the gold price fell to $ 3,281 (2,899.18 euros) per trulner ounce after recovering from greater losses. Nevertheless, the gold price heads for the fourth trading day with losses. The record high of mid-April was $ 3,500, which was fired through geopolitical tensions and trade conflicts over the course of the week. An important factor for the increase in the gold price was the threat of 50 percent punitive tariffs on European products by US President Donald Trump, which were quickly put on hold, which caused sales to trigger gold. A US Federal Court declared the tariffs to be illegal and lifted its application permanently, which leaves a certain uncertainty with regard to the possible government.

These developments, together with the increasing concerns, lead to an increased demand for gold, which is considered a safe port in uncertain times. According to reports from NN in the course of the trading week increased by about $ 150, while in May it had fallen to $ 3,120 in May. The positive development means that the gold price has risen by around 25 % this year, even more than 40 % in the past twelve months.

market reactions and economic uncertainties

Trump's announcements also had immediate effects on the markets. After the announcement, the European stock markets temporarily fell by around three percent. The euro also came under pressure, while the demand for German government bonds is increasing, which indicates an increased need for security from investors. Course losses on the stock exchanges were expected in the United States because the uncertainties about the economic stability of the United States continued to grow.

In addition, experts fear that the high debt of the US government, increasingly by fiscal packages, could question the load-bearing capacity of the US budget situation. Raw material expert Thu Lan Nguyen from Commerzbank expressed concerns about the possible effects of this debt burden. Moody’s has downgraded the US credit assessment, which undermines the status of the US state bonds as a safe haven.