Gold Hits New Record High as Trade Tensions Intensify
On Tuesday, gold surged to a fresh record as escalating trade tensions between the United States and China fueled demand for safe-haven assets.
Gold climbed to a new record high just above $3,317 per troy ounce on Wednesday morning, up from just under $3,220 overnight and $3,050 a week ago. The yellow metal has surged 25% since the start of the year, marking a series of record highs amid growing fears of a global recession.
The rally came as former President Donald Trump called on China to resume trade talks, following Beijing’s directive to domestic airlines to halt further deliveries from aircraft manufacturer Boeing. In a surprise move, China also announced the appointment of a new trade negotiator, signalling a potential shift in its approach.
Konstantinos Chrysikos, market strategist at Kudotrade, said the surge in gold prices was driven by “persistent trade policy uncertainty and a broadly weaker US dollar.”
“While recent tariff exemptions had suggested some willingness to compromise, the latest signals from Washington point to a hardening trade stance — a shift likely to sustain safe-haven demand and keep gold prices supported,” he added.
Gold Price Forecasts Rise as Demand Outlook Strengthens
Goldman Sachs projected that gold prices could range between $3,650 and $3,950 an ounce, noting that a potential economic downturn could drive prices as high as $3,880.
Meanwhile, UBS raised its year-end forecast to $3,500 per ounce, citing stronger central bank demand. The bank now expects purchases to reach 1,000 metric tons this year, up from its previous estimate of 950 tons.
