Gold prices hovered near record highs on Thursday as mounting trade tensions and geopolitical instability fuelled investor demand for safe-haven assets.
On Wednesday, US President Donald Trump announced a 25% tariff on imported cars and light trucks, set to begin next week.
Concerns about slower US growth has reinforced a bullish outlook for the precious metal.
Geopolitical developments are also playing a significant role.
Escalating tensions in the Middle East, following the collapse of a fragile ceasefire, have intensified global risk aversion. Meanwhile, in Eastern Europe, although recent negotiations raised hopes for a ceasefire between Russia and Ukraine, Russia’s conditional stance and ongoing attacks have diminished the prospects of a resolution.
This high-tension environment reinforces the demand for safe-haven assets, potentially driving gold toward new record highs.
On the macroeconomic front, US economic expectations could also drive the market as weak growth could boost gold prices.
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