Gold climbed to a fresh record high on Monday as investors sought safety amid renewed trade tensions between the United States and China.
Spot gold rose 3% to $4,103.90 an ounce, extending a sharp rally driven by mounting geopolitical uncertainty and risk aversion.
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The renewed dispute between Washington and Beijing was sparked last Thursday when China imposed new restrictions on rare earth exports, prompting President Donald Trump to threaten 100% tariffs in response. The escalation rattled global markets and pushed investors toward traditional safe-haven assets such as gold.
“While trade tensions have eased again between the U.S. and China, the 100% additional tariff threat remains,” said Giovanni Staunovo, analyst at UBS, adding that trade disputes continue to be a major focus for investors.
Gold’s appeal has also been underpinned by its role as a hedge against inflation and its reputation as the ultimate store of value during periods of global uncertainty.
