The price of gold has soared to unprecedented levels as investors flock to the precious metal amid growing economic uncertainty. The surge comes after former US President Donald Trump proposed imposing new tariffs on Chinese imports, sparking fears of renewed trade tensions.
Market Reactions and Investor Sentiment
Global markets have responded with caution, with the FTSE 100 showing mixed performance in early trading. Analysts suggest that gold's rally reflects a broader shift towards safe-haven assets as geopolitical risks escalate.
Trump's Tariff Proposal Shakes Confidence
Trump's latest comments on imposing 60% tariffs on Chinese goods have rattled investors, prompting concerns over inflation and supply chain disruptions. The move could reignite trade wars, further destabilising an already fragile global economy.
Gold's Record Rally
Spot gold prices climbed to an all-time high, surpassing $2,400 per ounce, as demand for the yellow metal surged. Silver and other precious metals also saw significant gains, reinforcing the flight to safety among traders.
What This Means for Investors
Financial experts advise caution, warning that market volatility may persist in the coming weeks. With central banks maintaining a cautious stance on interest rates, gold could remain a preferred hedge against inflation and economic instability.
