The gold price has hit a new all-time high today, with the precious metal now fetching $3,000 per ounce.
Analysts said the rising trade tensions and war comments from US president Donald Trump pushed up gold prices. They also said that the recent signs that inflationary pressures are rising could also push prices further up.
Spot gold has gained 0.7% today to $2,954 per ounce, meaning it has risen by over 12% so far this year.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said gold is benefitting from being a safe haven as traders mull the inflationary risks of US tariffs and geo-political risks.
“The precious metal is riding high at record levels amid concerns about Trump’s trade and foreign policy stances. Tensions remain high around talks over Ukraine after the US President referred to President Zelensky as a dictator. The US message that Europe should do more itself to counter military threats, is adding to concerns about a fracturing of solid defence relations,” she said.
Inki Cho, financial markets strategist consultant to Exness, added: “On the geopolitical front, the ongoing conflict between Russia and Ukraine adds another layer of complexity. The US started negotiations with Russia, raising hopes for a resolution. Steady progress in negotiations could strengthen risk appetite, putting pressure on gold. Conversely, any setbacks may reinforce gold’s appeal as a safe-haven asset.”
