Trump tariffs push gold prices to record high as investors seek safe haven
Investor concerns about a potential global trade war have caused gold prices to soar to unprecedented levels
Gold prices surged to a record high on Monday as investors sought out safe-haven assets amid uncertainty caused by US President Donald Trump’s tariff policies and lingering inflation concerns.
The price of international spot gold rose 0.57 per cent to US$2,813.34 per ounce on Monday, after reaching a record high of US$2,830.49 earlier in the session.
The upwards trend continued into Tuesday, with gold trading at US$2,819.46 per ounce by the morning.
In China, gold product prices have also been rising since the beginning of the year, with major jewellery brands such as Chow Tai Fook and Chow Sang Sang reporting prices at over 850 yuan per gram (US$3,325 per ounce) on Tuesday.
“The trade disputes have significantly heightened market risk aversion, driving gold prices to new highs,” Citic Securities analysts said in a research note on Monday. “We believe that further intensification of trade tensions will continue to serve as a catalyst for gold prices.”
Central banks around the world – including those of China, Russia, India and the United Arab Emirates – have been increasing their gold reserves in recent months, but demand for safe-haven assets began to spike after Trump announced on Saturday that the US would impose tariffs on imports from Canada, Mexico and China.
The market uncertainty has continued into this week, with the US reaching a last-minute deal to avoid levying tariffs on Canada and Mexico but going ahead with its plans to raise tariffs on Chinese imports by 10 per cent on Tuesday.
In response, China announced on Tuesday that it would impose tariffs ranging from 10 to 15 per cent on certain US products – including liquefied natural gas, coal, crude oil and large displacement vehicles – starting from February 10.
Investor demand for safe-haven assets such as gold has also risen due to the stock market shock caused by Chinese artificial intelligence start-up DeepSeek, which has caused a sell-off of many US tech stocks, analysts from Soochow Securities said.