Stocks Soar Amid Trade Deal Hopes
Gold breaks 3,000 amid Donald Trump's trade wars
The price of gold has surged past the $3,000 mark for the first time in history, as investors seek safe-haven assets amid escalating trade tensions and economic uncertainty.
Gold futures for December delivery rose $22.40 to settle at $3,015.90 per ounce on the Comex division of the New York Mercantile Exchange, according to data from Kitco.
The precious metal has been gaining traction in recent months as a haven asset, as investors seek to protect their wealth from the fallout of US President Donald Trump's trade wars.
The Trump administration has imposed tariffs on billions of dollars' worth of goods from China, the European Union, Canada and other countries, sparking retaliation and concerns about a global trade war.
Gold is often seen as a safe-haven asset during times of economic uncertainty, as its value tends to rise when investors become risk-averse and seek to diversify their portfolios.
The surge in gold prices comes as the US-China trade dispute shows no signs of easing. Trump has threatened to impose additional tariffs on Chinese goods, which could further escalate tensions.
Other safe-haven assets, such as the US dollar and Treasury bonds, have also seen significant gains in recent weeks as investors seek refuge from the trade tensions.
The gold price has been driven higher by a combination of factors, including the US-China trade tensions, concerns about the global economy, and the potential for further monetary policy easing by central banks.
The surge in gold prices has also been fueled by a decline in real interest rates, which makes gold more attractive as an investment opportunity.
The $3,000 mark is a significant psychological barrier for gold, and the break above it could signal a further rally in the coming months. However, some analysts caution that the rally may be short-lived if the trade tensions are resolved and the global economy begins to recover.
For now, investors appear to be seeking safe-haven assets, and gold is benefiting from the flight to safety.