Tensions drive gold to new peaks.. investors rush to hedge!
Gold prices continued their strong rise during trading on Monday, reaching new record levels, driven by increasing concerns over escalating trade tensions between the United States and its trading partners. This rise came as investors turned to the precious metal as a safe haven, amid growing anxiety about the impact of the trade dispute on the global economy.
Surge in spot and futures gold prices
In this context, gold futures contracts saw an increase of 1.31%, equivalent to $41 per ounce, bringing their price to $3155. Spot gold prices also rose by 1.24%, or $38, trading at $3123 per ounce. These increases reflect continued strong demand for gold, amid a climate of uncertainty in financial markets.
Reasons for rising gold prices
This increase is attributed to several key factors, most notably the escalation of trade tensions between Washington and its partners, especially after the announcement by President Donald Trump's administration of new tariffs, including a 25% tariff on imported cars and parts, and an additional 10% on Chinese imports. Markets are also awaiting another announcement on April 2 regarding additional tariffs, which has increased demand for gold as a safe haven to hedge against economic fluctuations.