Gold Prices Surge 16% Amid Trade War Fears, Reach $3,061

Gold prices surged to a new record high, driven by escalating trade war concerns following the announcement of tariffs on all automobile imports by the U.S. President. Investors are increasingly worried about the potential expansion of the trade war, which has led to a surge in demand for safe-haven assets like gold. On Friday, gold prices rose by 0.2%, reaching a new high of over $3,061 per ounce. This upward trend is supported by economic and geopolitical risks, which have bolstered the demand for gold as a protective measure against market volatility.

The stability of gold prices near historical highs is attributed to the persistent uncertainty surrounding the next round of tariffs. Despite some indications that the U.S. might impose additional tariffs, the overall market sentiment remains cautious. This caution has led to a continued increase in the demand for gold, as investors seek to hedge against potential economic downturns and inflationary pressures.

The unpredictable nature of the U.S. President's tariff policies has exacerbated global trade war risks, further driving up the demand for gold as a safe-haven asset. Analysts have noted that while the market has already priced in some of these risks, the ongoing uncertainty continues to support gold prices. The need for gold to maintain its upward momentum is crucial, as it serves as a reliable store of value in times of economic turmoil.

This year, gold prices have risen by approximately 16%, reaching record highs at least 15 times. Several major banks have revised their gold price targets upward, with one prominent bank increasing its year-end gold price forecast to $3,300 per ounce. This revision is based on stronger-than-expected central bank demand for gold and steady inflows into gold ETFs.

Despite reaching a record high, gold prices experienced a slight decline afterward, stabilizing at around $3,058.80 per ounce. The dollar index remained steady, and prices for other precious metals such as silver, platinum, and palladium also held firm.