Gold Prices Reach New High Amid Trade War Fears

Gold prices reached a historic peak on Monday as investors turned to safe-haven assets due to uncertainty surrounding US President Donald Trump’s tariff strategies and ongoing inflation worries.

The price of international spot gold increased by 0.57 percent to $2,813.34 per ounce on Monday, after hitting an all-time high of $2,830.49 earlier in the day.

The upward trend persisted into Tuesday, with gold trading at $2,819.46 per ounce by the morning.

In China, the prices of gold products have also been climbing since the beginning of the year, with leading jewelry brands, including Chow Tai Fook and Chow Sang Sang, reporting prices exceeding 850 yuan per gram (approximately $3,325 per ounce) on Tuesday.

According to analysts from Citic Securities, "The trade disputes have significantly heightened market risk aversion, driving gold prices to new highs. We believe that further intensification of trade tensions will continue to serve as a catalyst for gold prices."

Central banks worldwide, including those in China, Russia, India, and the United Arab Emirates, have been increasing their gold reserves lately. Demand for these safe-haven assets surged after President Trump announced on Saturday the imposition of tariffs on imports from Canada, Mexico, and China.

gold, tariffs, trade