Strategists Push Precious Metals as Shield Against Donald Trump’s Tariff War

• Trump’s tariffs triggered market volatility, wiping out trillions in stock and crypto value.
• Investors are turning to gold and silver as hedges against uncertainty.
• Analysts remain unsure whether the trade war’s impact will be temporary.

Donald Trump’s aggressive trade policies have reignited market turmoil, wiping out trillions in stock and crypto value while fueling inflation concerns.

As volatility surges, strategists are increasingly advocating for gold and silver as essential hedges against the uncertainty triggered by Trump’s tariffs.

With the full impact of these policies still unfolding, analysts warn that the market’s instability could persist.

As a result, institutional investors and central banks are ramping up their exposure to precious metals, positioning them as a safeguard against economic disruption.

Trump’s Trade War Effects on Markets

Since Donald Trump took office, his tariff policies have rattled financial markets, dampening investor sentiment and triggering sharp sell-offs.

The effects have been widespread:

• S&P 500: Down 8.6% from its February peak, erasing $4 trillion in value.
• Nasdaq: Fell over 10%, entering correction territory as tech stocks tumbled.
• Tesla: Lost $125 billion in a single day due to supply chain concerns.
• Crypto Market: Shed $2 trillion despite Trump’s pro-crypto stance.

Sectors have been hit unevenly.

Manufacturing and auto industries are grappling with rising costs, leading to increased vehicle prices.

Technology stocks, especially semiconductors, face Chinese retaliation, and energy markets remain volatile.

Meanwhile, inflation pressures are mounting as import costs surge, slowing economic growth and disrupting global supply chains.

Strategists Push Gold and Silver

As stocks and crypto struggle under Trump’s tariffs, investment strategists are urging investors to consider  gold and silver as safe-haven assets to weather economic uncertainty.

As a result, gold demand has surged amid concerns that tariffs could further disrupt global trade, weaken corporate earnings, and fuel inflation.

Since the beginning of 2025, gold has been trading between $2,900 and $3,000 as investors seek stability.

Many are flocking to gold ETFs , futures, and physical bullion to protect their wealth, while central banks have been ramping up gold reserves to hedge against potential currency volatility.

Philippe Gijsels, Chief Strategy Officer at BNP Paribas Fortis, told CNBC , “In this world, it’s wise to own gold and silver,” predicting that with “headlines coming from every direction, market volatility is likely to persist.”

With tariffs straining global supply chains, the metal’s role in manufacturing could make it even more valuable.

Meanwhile, mining stocks like Barrick Gold and Newmont Corporation are gaining traction as investors look for leveraged exposure to rising metal prices.

Bitcoin Still Not Good Enough

Despite hopes that Bitcoin (BTC) could act as a hedge, its price remains closely tied to equities.

Garrison Yang, co-founder of Web3 development studio Mirai Labs, told CCN:

“There is no near-term scenario where Bitcoin breaks correlation with equities. At best, Bitcoin could bottom sooner, but Bitcoin is still very much a risk asset, and there is no reality where crypto trades in isolation from the broader market.”

Yang pointed out that BTC remains sensitive to macroeconomic conditions, including interest rate shifts and liquidity cycles. As long as institutional investors treat it as a high-risk asset, its price will continue to move in lockstep with stocks.

This challenges the narrative of Bitcoin as a hedge. Unlike gold, which historically benefits from economic uncertainty, BTC has struggled to hold value this year during market downturns. Without a fundamental shift in investor perception, its role as a safe haven remains uncertain.

Rising U.S. Inflation Could Lift Gold

Trump’s tariffs are also fueling inflation, which could influence Federal Reserve policy.

Ruben Ferreira, Head of Portuguese Operations at Flow Community, noted:

“Softer-than-expected figures could push the Fed to adopt a more dovish tone and consider cutting interest rates sooner, which could support gold.”

Meanwhile, geopolitical tensions—especially between Ukraine and Russia—could also impact gold’s trajectory. Ferreira added:

“Any positive news could weigh on gold, while any setbacks or uncertainty could push gold prices higher.”