- Spot gold hits record high above $3,330 amid U.S.-China trade tensions
- Trump orders probe into critical mineral imports, fueling market fears
- Analysts project gold may reach $3,600 by year-end amid global uncertainty
Gold prices surged to historic highs above $3,330 per ounce. Investors rushed to safe-haven assets amid intensifying U.S.-China trade tensions.
In response, China suspended Boeing aircraft deliveries and appointed a new trade negotiator, signaling a recalibration of strategy. Investors interpreted these moves as signs of a prolonged conflict, driving demand for assets less tied to geopolitical volatility.
Gold Rally Shatters Records as Global Trade Tensions Deepen
The price of gold has exploded in recent weeks, jumping more than 25% year-to-date. The metal crossed the $3,300 mark for the first time ever. This record rally reflects investor unease over the economic fallout from escalating geopolitical tensions and regulatory crackdowns on strategic imports.
Trump’s latest executive order targets China’s dominance in critical minerals, semiconductors, and pharmaceuticals. This has stirred fears of retaliatory measures and long-term supply chain disruptions. As a result, equity markets have seen steep declines, particularly in Asia. Meanwhile, gold has emerged as a key refuge.
The weakening U.S. dollar, down 0.5% against global currencies, has further supported gold’s rally. Since gold is priced in dollars, a softer greenback makes it cheaper and more appealing to international buyers. This has added momentum to the surge.
Financial institutions are responding swiftly. ANZ and Saxo Bank have both revised their gold price forecasts upward. They cite inflation risks, sovereign debt burdens, and a shift by central banks away from dollar-based reserves. Confidence in gold’s long-term resilience appears to be gaining broad traction.
As trade tensions rise and market instability grows, gold continues to prove its role as a reliable hedge. This is a signal that global investors are bracing for prolonged uncertainty.
“In times of crisis, gold becomes not just a metal, but a message.” — Unknown
