Gold Prices Hit Record Amid Trade Tensions

Gold prices have reached unprecedented levels, surpassing $3,148 per ounce due to escalating geopolitical tensions and economic uncertainty, particularly around US tariffs under President Trump. The tariffs, set to take effect soon, have increased fears of a global trade war, driving investors towards gold as a safe haven. Despite gold's reputation as an inflation hedge, its price is more closely tied to government budget deficits, with central banks and investors increasing their gold holdings to diversify away from the US dollar. The surge in gold prices has also benefited gold miners, with the VanEck Gold Miners ETF seeing significant gains. Analysts predict continued growth in gold prices, potentially reaching $3,300 to $3,500 per ounce by the end of the year, supported by ongoing central bank purchases and geopolitical instability. However, the relationship between gold and inflation is inconsistent, as seen in past decades.