Gold Price on the Rise: Historical Peak Reached

The gold price reached another record high on Friday morning: An ounce (approximately 31.1 grams) cost up to 3,082 US dollars (equivalent to about 2,858 euros). This means the precious metal recorded a gain of nearly two percent this week. Compared to last year, this represents a price increase of around 42 percent – an impressive growth mainly attributed to geopolitical tensions and economic uncertainties.

Gold as a Safe Haven

As a classic "safe haven," gold is currently benefiting massively from several factors: In addition to ongoing conflicts – particularly the war in Ukraine and the tense situation in the Middle East – the current US trade policy is also causing uncertainty in the markets. US President Donald Trump announced on Wednesday tariffs of 25 percent on imported cars and car parts. The EU has already announced a determined counter-reaction should Washington stick to the plans.

Inflation Driver Tariffs

The new tariffs could not only exacerbate trade conflicts but also lead to rising inflation. In such phases, gold is traditionally considered a hedge against the loss of purchasing power. "Inflation protection is currently a significant factor for the increase," market observers in London analyze.

Gold is also currently receiving support from monetary policy: The US Federal Reserve recently left open whether there could be interest rate cuts this year – a signal that further increases the attractiveness of gold compared to interest-bearing investments.

(APA/Red)

This article has been automatically translated, read the original article here.