Gold prices surged Monday, inching closer to an all-time high, as escalating global trade tensions sent investors flocking to safe-haven assets.
Bullion prices jumped nearly 1.8% to touch $2,425 per ounce during early Asian trading, approaching its record peak of $2,450, fueled by growing concerns that worsening trade disputes between major economies could destabilize global markets.
The sharp rise comes on the heels of fresh tariff threats exchanged between the U.S. and China over tech exports, coupled with mounting friction in the Eurozone’s negotiations with Southeast Asian trade blocs.
The resulting uncertainty has put pressure on equity markets and currencies, prompting a flight to safety.
“Gold is doing what gold does best — offering shelter in a storm,” said Meera Chopra, senior commodities analyst at Phoenix Wealth Advisors. “Investors are nervous.
Trade war rhetoric is heating up, and traditional market indicators are flashing warning signs.”
Demand for gold-backed ETFs has also seen a significant uptick, with inflows surging 5% week-over-week.
Meanwhile, central banks in emerging markets have accelerated gold purchases to shield reserves from potential currency devaluations.
In India, the world’s second-largest consumer of gold, prices surged to ₹71,300 per 10 grams — a new domestic record.
Traders and jewelers are bracing for further volatility in the short term.
Analysts believe gold may surpass its previous highs if geopolitical tensions continue to escalate and the U.S. Federal Reserve maintains its cautious stance on rate cuts amid inflationary pressure.
“This is not just a price rally,” Chopra added. “This is a sentiment shift — a fundamental reshuffling of priorities in global portfolios.”
As the storm clouds of economic nationalism loom larger, all eyes remain fixed on whether gold will officially breach its historic ceiling in the days ahead.
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