The price of gold reached a new record on Monday, with an ounce soaring to $3,405.19, driven by escalating uncertainty in global trade. As of 1200GMT, the price stood at approximately $3,404.40.
The surge, more than 2.3% on the day, came as investor concerns over the intensifying trade conflict between the U.S. and China mounted. The central banks’ tendency to cut interest rates, particularly the European Central Bank’s 25 basis point cut last week, also contributed to the rise in gold prices.
The spike in gold prices was further exacerbated by the announcement of U.S. tariffs on over 180 countries, coupled with China’s reciprocal tariff increases. The U.S. raised tariffs on China to 145%, while China retaliated with tariffs on U.S. goods of up to 125%. Additionally, the U.S. imposed a ban on exports of Nvidia’s H20 chips to China and enforced a steep 245% tariff on Chinese goods as part of the ongoing trade showdown.
China responded firmly, stating it would not accept any trade deals that undermine its interests and would take “resolute countermeasures” in the face of such actions, particularly as the U.S. seeks to press other countries to limit trade ties with China.
