Gold price hits new high of $3,300 amid escalating trade war
Kyiv • UNN
The price of gold has risen amid fears of a global recession and trade wars. Experts predict a further increase in price to $4,000 per ounce in 2026.
Gold rose to a new high, exceeding $3,300 per ounce, according to the COMEX commodity exchange, writes UNN.
Details
As of 9:34 a.m. Kyiv time, the price of gold reached $3,307.7.
According to Bloomberg, the rise in the price of gold is taking place against the backdrop of US President Donald Trump's order to conduct an investigation that could open a new front in the global trade war, causing another departure from stocks and a transition to safe-haven assets.
Earlier today, bullion had already risen in price so much that it surpassed the previous historical high set on Monday. Traders were once again shocked by the many headlines about duties, against the background of Trump launching an investigation into the need to impose duties on critical minerals.
The precious metal has risen in price by more than 20% this year and reached a series of record highs, against the background of the escalating trade war causing concern about a possible global recession, and it is difficult for investors to take long-term positions due to the unpredictability of announcements about duties from Washington.
On Tuesday, Trump called on China to contact him to start trade negotiations after Beijing ordered airlines not to accept further deliveries of Boeing Co. aircraft.
This week, the US administration also announced an investigation into imports of semiconductors and pharmaceuticals after the introduction of industry duties on steel and aluminum, cars and auto parts. It also stated that it is negotiating with dozens of other trading partners to reduce trade barriers in exchange for exemption from higher duties.
Leading banks remain optimistic about the prospects for gold in the coming quarters, as investors increase assets in gold-backed exchange-traded funds and central banks continue to accumulate the metal. Goldman Sachs Group Inc. predicts that prices will rise to $4,000 an ounce by mid-2026.
"The struggle for power between major countries will continue," said Lyuchen Wang, an analyst at Shanghai-based Galaxy Futures Co. "Gold's appeal as a safe-haven asset means that in the short and medium term, it is more likely to rise than fall."
Traders are also betting that there will be at least three rate cuts by the US Federal Reserve this year, the publication writes. Loosening monetary policy is generally positive for the precious metal.
At the same time, silver is reported to have risen in price, while palladium and platinum have fallen.
Reference
COMEX is a specialized contract market (DCM) for CME Group, offering benchmark metal products that fall under COMEX rules and regulations. COMEX, part of the Chicago Mercantile Exchange, is reportedly the primary platform for trading commodities such as gold and silver.
CME Group Inc. is an American financial services company based in Chicago that operates financial derivatives exchanges, including the Chicago Mercantile Exchange, the Chicago Board of Trade, the New York Mercantile Exchange, and the Commodity Exchange. The company also owns 27% of S&P Dow Jones Indices.