Gold prices reach unprecedented levels
The increase has been linked to tariff exchanges between the US and China, as well as investor concerns about a global trade war. Read Full Article at RT.com.
TroibNews 
Gold prices reached a historic high on Wednesday, continuing an unprecedented rally as investors concerned about a global trade war sought safe-haven assets amid ongoing US-China trade tensions.
The price of gold increased by 1%, with spot gold touching $2,858.12 per ounce before settling at $2,855.32, representing a 0.5% rise for the day. US gold futures also saw gains, closing at $2,884.60, up 0.3%.
Analysts have linked the surge to the intensifying trade disputes between the US and China. Following the implementation of an additional 10% tariff on all Chinese imports by President Donald Trump, which took effect on Tuesday, Beijing retaliated by introducing tariffs on select US imports. This included a 15% tariff on US coal and liquefied natural gas, as well as a 10% tariff on several other products, such as crude oil, agricultural machinery, large-displacement cars, and pickup trucks, scheduled to begin on February 10. Beijing also hinted at potential sanctions against companies like Google.
Reports suggest that Trump is not rushed to initiate discussions with Chinese President Xi Jinping to resolve the ongoing issues.
“The potential economic consequences of a trade war between the U.S. and China are causing investors to fear a global recession and rising inflation,” noted Dominik Sperzel, the head of trading at Heraeus Metals Germany, in an interview with Reuters.
Gold prices have climbed more than 8% this year due to apprehensions surrounding a global trade war, breaking previous records. In London, the cost of short-term gold borrowing has surged as a result of a shortage in trading markets.
Experts attribute this shortage to a significant outflow of gold toward the US, where inventories on the New York Comex, a key commodities exchange, have skyrocketed by 88% since the presidential election in November 2024. As traders anticipate the effects of the tariffs instituted by Trump, shipments to the US have increased.
“Gold is overbought and needs to correct,” stated StoneX analyst Rhona O’Connell, while adding, “there is still scope for further upside, but barring any black swans we still expect to see the price topping out this year.”
According to a report released by the World Gold Council on Wednesday, global gold demand rose by 1% to a record 4,974.5 metric tons in 2024, driven by heightened investment and increased central bank purchases in the fourth quarter.
Aarav Patel for TROIB News
The price of gold increased by 1%, with spot gold touching $2,858.12 per ounce before settling at $2,855.32, representing a 0.5% rise for the day. US gold futures also saw gains, closing at $2,884.60, up 0.3%.
Analysts have linked the surge to the intensifying trade disputes between the US and China. Following the implementation of an additional 10% tariff on all Chinese imports by President Donald Trump, which took effect on Tuesday, Beijing retaliated by introducing tariffs on select US imports. This included a 15% tariff on US coal and liquefied natural gas, as well as a 10% tariff on several other products, such as crude oil, agricultural machinery, large-displacement cars, and pickup trucks, scheduled to begin on February 10. Beijing also hinted at potential sanctions against companies like Google.
Reports suggest that Trump is not rushed to initiate discussions with Chinese President Xi Jinping to resolve the ongoing issues.
“The potential economic consequences of a trade war between the U.S. and China are causing investors to fear a global recession and rising inflation,” noted Dominik Sperzel, the head of trading at Heraeus Metals Germany, in an interview with Reuters.
Gold prices have climbed more than 8% this year due to apprehensions surrounding a global trade war, breaking previous records. In London, the cost of short-term gold borrowing has surged as a result of a shortage in trading markets.
Experts attribute this shortage to a significant outflow of gold toward the US, where inventories on the New York Comex, a key commodities exchange, have skyrocketed by 88% since the presidential election in November 2024. As traders anticipate the effects of the tariffs instituted by Trump, shipments to the US have increased.
“Gold is overbought and needs to correct,” stated StoneX analyst Rhona O’Connell, while adding, “there is still scope for further upside, but barring any black swans we still expect to see the price topping out this year.”
According to a report released by the World Gold Council on Wednesday, global gold demand rose by 1% to a record 4,974.5 metric tons in 2024, driven by heightened investment and increased central bank purchases in the fourth quarter.
Aarav Patel for TROIB News
