The rise is linked to US President Donald Trump’s announcement of a 25 per cent tariff on imported cars, which sent investors fleeing risk and into gold.
Commodity markets show the same trend, with futures up 1.4 per cent at $3,063.80. With market instability expected to deepen, gold is increasingly the safe-haven asset commanding investors’ full attention.
Forex.com analyst Fawad Razaqzada concluded: “Sharp swings in equity markets have pushed people towards gold. It is fair to say the trade war has fully begun. Retaliatory measures between the US and other countries are clearly coming.” As economic uncertainty spreads, investors are paying closer attention to inflation figures and to further US tariffs — conditions that analysts say make gold an ever more reliable investment. Investors shielding themselves with gold in a market overshadowed by a trade war are expected to act with more caution from here on.
Source: CNBC Mongolia