Gold prices have reached new heights, surpassing $3,000 per troy ounce for the first time this week. The price surge is largely driven by economic uncertainty and anxiety among investors, particularly due to US President Donald Trump’s escalating trade war.
As of Thursday, the closing price of New York spot gold was a record $2,988 per troy ounce, an increase of over $825 from last year’s price. Gold futures have also surged, with prices falling short of $3,000 on Friday.
The interest in buying gold typically spikes during times of economic turmoil, as investors seek safe havens for their money. The current uncertainty is fueled by the trade war, which has created a sense of whiplash among businesses and consumers. Economists predict that this will lead to higher prices.
Analysts at RBC Capital Markets have stated that while inflation has cooled down, tariffs threaten to send prices higher. Additionally, global challenges and geopolitical tensions have increased concerns about managing money, causing investors to turn to gold as a safe haven.
However, experts caution against putting all your eggs in one basket, as gold is a volatile asset. Critics argue that gold may not be the best investment option, particularly when it comes to mitigating inflation risks. The Commodity Futures Trade Commission warns of potential scams and counterfeits on the market.
Despite these concerns, gold remains a popular choice among investors seeking diversification and balance in their portfolios. Its value can increase over time, making it a tangible asset that provides comfort during uncertain times.
Source: https://apnews.com/article/gold-price-record-high-economic-uncertainty-59ef0a740910042f488609ff471b4334