Investors seeking returns and concerned about the impact of US President Trump's trade war drove up gold prices, which had fallen in the first few sessions of June.&nbsp;But the yellow metal made a U-turn on Wednesday as dip-buying and trade talk uncertainty brought investors back into the haven asset. May wasn't a great month for gold as risk assets rallied significantly.<h2>Gold just $200 from a new all-time high</h2>Still, bullion is about 200 dollars away from its all-time high hit in April. The precious metal is up around 28 per cent this year in the multiple record-setting rally. Along with longer-dated bond yields, the rise in the haven asset is a warning shot at the deteriorating economic outlook.&nbsp;True to Wall Street's acronym of 'TACO,' 'Trump always chickens out,' the president has made outsized threats and followed through for a time, only to back off.&nbsp;Still, the one bet that has traders worried is the impact of such uncertainty on the real economy. Central bank buying spree is keeping gold well bid amidst changing geopolitical dynamics.&nbsp;More importantly, no one expects central banks to halt their massive purchases of gold. The buying spree by central banks has become a key factor in the record-breaking bull run in gold.&nbsp;Goldman Sachs researchers believe that central banks and sovereign wealth funds are amassing nearly 80 metric tons of gold every month on a global scale. That at current prices would be worth around 8.5 billion dollars.&nbsp;Trade data suggests that China and other unnamed purchasers via Switzerland account for a lot of the purchases, but much of the buying is done in secret.&nbsp;The World Gold Council reports that central banks and sovereign wealth funds have been purchasing 1,000 tons of gold per annum, which is equivalent to at least 25 per cent of the annual mined production.In January, HSBC surveyed 72 central banks, and almost a third of them intended to increase their purchases in 2025. None intended to sell.&nbsp;Goldman Sachs maintains its 3,700 dollars per ounce end-of-year prediction. On Wednesday, gold was trading at around 3,360 dollars, not far from its all-time peak of over 3,500 dollars in April.&nbsp;(With inputs from the agencies) &nbsp;

Bullion continues to surge, nearly $200 from its April peak, fueled by strong central bank purchases amid economic uncertainty.

Investors seeking returns and concerned about the impact of US President Trump's trade war drove up gold prices, which had fallen in the first few sessions of June. But the yellow metal made a U-turn on Wednesday as dip-buying and trade talk uncertainty brought investors back into the haven asset. May wasn't a great month for gold as risk assets rallied significantly. Gold just $200 from a new all-time high Still, bullion is about 200 dollars away from its all-time high hit in April. The precious metal is up around 28 per cent this year in the multiple record-setting rally. Along with longer-dated bond yields, the rise in the haven asset is a warning shot at the deteriorating economic outlook. True to Wall Street's acronym of 'TACO,' 'Trump always chickens out,' the president has made outsized threats and followed through for a time, only to back off. Still, the one bet that has traders worried is the impact of such uncertainty on the real economy. Central bank buying spree is keeping gold well bid amidst changing geopolitical dynamics. More importantly, no one expects central banks to halt their massive purchases of gold. The buying spree by central banks has become a key factor in the record-breaking bull run in gold. Goldman Sachs researchers believe that central banks and sovereign wealth funds are amassing nearly 80 metric tons of gold every month on a global scale. That at current prices would be worth around 8.5 billion dollars. Trade data suggests that China and other unnamed purchasers via Switzerland account for a lot of the purchases, but much of the buying is done in secret. The World Gold Council reports that central banks and sovereign wealth funds have been purchasing 1,000 tons of gold per annum, which is equivalent to at least 25 per cent of the annual mined production. In January, HSBC surveyed 72 central banks, and almost a third of them intended to increase their purchases in 2025. None intended to sell. Goldman Sachs maintains its 3,700 dollars per ounce end-of-year prediction. On Wednesday, gold was trading at around 3,360 dollars, not far from its all-time peak of over 3,500 dollars in April. (With inputs from the agencies)

Investor concern over Trump's trade war elevated gold prices after initial declines in June.

Gold does a U-turn despite the stock rally

As the global economy reels from President Donald Trump’s aggressive trade manoeuvres, Wall Street has coined a nickname that’s quickly gone viral, and it’s getting under Trump’s skin.&nbsp;TACO Trade, short for ‘Trump Always Chickens Out’, is a term first introduced by Robert Armstrong, a columnist for the Financial Times. It describes what many economists and investors say has become a hallmark of Trump’s approach to trade policy, threatening steep tariffs to gain leverage and then backtracking when markets react adversely.<h2>What is the ‘TACO Trade’?</h2>According to the Financial Times, TACO Trade refers to a recurring cycle: Trump threatens sky-high tariffs; global markets tumble; the president delays or waters down the measures; and markets bounce back as investors anticipate the pattern.&nbsp;For instance, as reported by Bloomberg, Trump announced sweeping new tariffs on nearly all trading partners on April 2, including a 26 per cent duty on Indian imports. But following a sharp sell-off in equities, including an 8 per cent drop in Hong Kong’s Hang Seng and a 9 per cent plunge in Tokyo’s Nikkei 225, Trump paused the tariffs seven days later for a 90-day window to renegotiate trade deals.<h2>Trump reacts&nbsp;</h2>Asked about the viral acronym during a White House media interaction, Trump bristled at the suggestion that he was retreating under pressure. “You call that chickening out? It’s called negotiation,” he told reporters, adding, “That’s a nasty question.” He went on to clarify that he often starts with a ‘ridiculously high number’ and then negotiates down, according to The New York Times.&nbsp;He also defended his decision to ease tariffs on China, saying, “We helped them… they were having difficulty because we were basically going cold turkey with them.”&nbsp;As per The Guardian, analysts argue that these recurring pullbacks have become so consistent that traders now price them into market forecasts, leading to sharp rebounds after Trump softens his stance.<h2>Trump tariff faces legal heat&nbsp;</h2>In a major blow to Trump’s economic agenda, a US federal court recently ruled that the president exceeded his authority when imposing wide-ranging tariffs under the International Emergency Economic Powers Act (IEEPA), according to Reuters.&nbsp;&nbsp;The court held that a trade deficit does not constitute an “unusual and extraordinary threat,” invalidating the tariffs announced in April as part of Trump’s so-called ‘Liberation Day’ package.&nbsp;As per Associated Press, the ruling was cheered by investors and trade partners. Stock indices such as India’s Sensex, Japan’s Nikkei, and South Korea’s KOSPI posted gains immediately after the verdict.&nbsp;However, the Trump administration appealed the ruling, and a federal appeals court has temporarily reinstated the tariffs, citing national security concerns. This means the 145 per cent duties on Chinese goods and baseline 10–26 per cent tariffs on others remain in place pending a final judgment.<h2>Why TACO Trade matters?</h2>According to Reuters, many global firms are now reconsidering their supply chain strategies amid trade uncertainty. For economists and investors, the “TACO Trade” phenomenon is more than a meme, it reflects an underlying instability in trade governance and a lack of policy clarity from the White House.&nbsp;“It’s not about ‘chickening out,’” Trump said defiantly this week, “it’s called smart negotiating.”Still, as Wall Street embraces the TACO metaphor, and markets continue to react in predictable waves,&nbsp;the label may prove stickier than Trump expects.&nbsp;

Business & Economy: The term, coined by Robert Armstrong for the Financial Times, refers to a recurring cycle where Trump threatens high tariffs to gain leverage and then backtracking when markets react adversely. 

As the global economy reels from President Donald Trump’s aggressive trade manoeuvres, Wall Street has coined a nickname that’s quickly gone viral, and it’s getting under Trump’s skin. TACO Trade, short for ‘Trump Always Chickens Out’, is a term first introduced by Robert Armstrong, a columnist for the Financial Times. It describes what many economists and investors say has become a hallmark of Trump’s approach to trade policy, threatening steep tariffs to gain leverage and then backtracking when markets react adversely. What is the ‘TACO Trade’? According to the Financial Times, TACO Trade refers to a recurring cycle: Trump threatens sky-high tariffs; global markets tumble; the president delays or waters down the measures; and markets bounce back as investors anticipate the pattern. For instance, as reported by Bloomberg, Trump announced sweeping new tariffs on nearly all trading partners on April 2, including a 26 per cent duty on Indian imports. But following a sharp sell-off in equities, including an 8 per cent drop in Hong Kong’s Hang Seng and a 9 per cent plunge in Tokyo’s Nikkei 225, Trump paused the tariffs seven days later for a 90-day window to renegotiate trade deals. Trump reacts Asked about the viral acronym during a White House media interaction, Trump bristled at the suggestion that he was retreating under pressure. “You call that chickening out? It’s called negotiation,” he told reporters, adding, “That’s a nasty question.” He went on to clarify that he often starts with a ‘ridiculously high number’ and then negotiates down, according to The New York Times. He also defended his decision to ease tariffs on China, saying, “We helped them… they were having difficulty because we were basically going cold turkey with them.” As per The Guardian, analysts argue that these recurring pullbacks have become so consistent that traders now price them into market forecasts, leading to sharp rebounds after Trump softens his stance. Trump tariff faces legal heat In a major blow to Trump’s economic agenda, a US federal court recently ruled that the president exceeded his authority when imposing wide-ranging tariffs under the International Emergency Economic Powers Act (IEEPA), according to Reuters. The court held that a trade deficit does not constitute an “unusual and extraordinary threat,” invalidating the tariffs announced in April as part of Trump’s so-called ‘Liberation Day’ package. As per Associated Press, the ruling was cheered by investors and trade partners. Stock indices such as India’s Sensex, Japan’s Nikkei, and South Korea’s KOSPI posted gains immediately after the verdict. However, the Trump administration appealed the ruling, and a federal appeals court has temporarily reinstated the tariffs, citing national security concerns. This means the 145 per cent duties on Chinese goods and baseline 10–26 per cent tariffs on others remain in place pending a final judgment. Why TACO Trade matters? According to Reuters, many global firms are now reconsidering their supply chain strategies amid trade uncertainty. For economists and investors, the “TACO Trade” phenomenon is more than a meme, it reflects an underlying instability in trade governance and a lack of policy clarity from the White House. “It’s not about ‘chickening out,’” Trump said defiantly this week, “it’s called smart negotiating.” Still, as Wall Street embraces the TACO metaphor, and markets continue to react in predictable waves, the label may prove stickier than Trump expects.

The term "TACO Trade" has gained popularity as Wall Street criticises President Donald Trump's aggressive trade policies.&nbsp;

What is ‘TACO Trade’? Trump's new nickname that fumes him amid the tariff legal saga

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Gold does a U-turn despite the stock rally

What is ‘TACO Trade’? Trump's new nickname that fumes him amid the tariff legal saga