World Gold Council CEO Predicts Price Rise Amid Tariff War

There is no foreseeable scenario where prices of the yellow metal will decline amid the tariff war, according to David Tait, chief executive officer of World Gold Council.

Every indicator, both logical and instinctive, points towards a rise in gold's value, Tait told NDTV Profit in a conversation on Wednesday.

A growing concern for many is the threat to global financial stability posed by the sovereign debt crisis, with $72 trillion in sovereign debt already existing and an additional $12–13 trillion expected this year, Tait said.

The last thing the world needs is rising interest rates and "steep yield cuts". Over the past 24 hours, a sell-off in US treasuries, particularly 10-year and 30-year bonds, has caught many by surprise, according to Tait.

Since US President Donald Trump's inauguration, gold prices have not rallied as much as anticipated. Many expected a decline in gold prices due to the reversal of key economic indicators that usually influence gold purchases, Tait said.

However, the persistent rise in gold prices under these conditions has left many puzzled, with central banks emerging as the main driving force behind this trend, he added.

The World Gold Council CEO highlighted that a small tariff introduction could trigger an inflationary surge, which seems inevitable. In the short term, Tait said, the interest rates would become steeper, adding pressure to the financial system. "While this steepening may not cause panic, but it will make people reflection on it."

After the tariff wars end, prices will likely rise and debt will become an even bigger problem. The slowing economy will make people focus more on debt as growth, which is needed to pay off debt, will be harder to achieve, Tait added.