Gold prices surged to a fresh record high on Wednesday, driven by growing concerns over trade wars and their impact on the global economy. The metal rose 1.2% to reach $2,877 an ounce, supported by worries about inflationary effects of tariffs between the US and China. Tightness in the gold market is also evident in recent jumps in lease rates, indicating a shorter supply of gold in the market. This has bolstered demand for safe-haven assets like gold. The recent price spike suggests that markets are waiting to see how trade tensions and potential inflationary effects on monetary policy will unfold.
Source: https://www.bloomberg.com/news/articles/2025-02-05/gold-holds-near-record-high-as-trade-war-stokes-haven-demand