Gold Surges Past $2900 as U.S.-China Trade Tensions Spark Safe Haven Demand

Spot Gold Breaks $2900 Mark to Hit Another All-Time High

The price of gold surged over 1% on Monday, surpassing the $2900 per ounce mark, as escalating trade tensions between the U.S. and China sparked safe-haven demand for the precious metal. This latest rally pushed gold prices to a record high, driven by concerns over a potential global trade war.

Analysts from various financial institutions weighed in on the gold market's recent performance. UBS analyst Giovanni Staunovo predicted that gold prices could continue to rise, potentially reaching $3000 per ounce. Daniel Hynes, Senior Commodity Strategist at ANZ Bank, warned that gold could be affected by the tariffs, causing disruptions in the physical market.

Kelvin Wong, Senior Market Analyst for Asia Pacific at OANDA, expressed his view on the likelihood of a gold price pullback. He stated, "I believe the likelihood of a current pullback is slim unless we start to see a strong rally in the U.S. dollar." This sentiment reflects the market's expectation that gold prices may continue to rise in the near term, barring any significant changes in the U.S. dollar's strength.