Gold Hits New Record Above $3,200 as US-China Trade War Intensifies

Gold prices experienced a significant rally on Friday, jumping 1.7% to $3,227.39 per ounce and briefly touching a record high of $3,237.56. This surge pushed bullion past the key psychological barrier of $3,200, bringing its weekly gains to over 6% and yearly gains to nearly 21%.

The precious metal’s rise comes amid multiple economic concerns, including an intensifying trade war between the US and China. Beijing’s decision to increase tariffs on US imports to 125% in retaliation for President Trump’s 145% duties on Chinese goods has heightened fears of global supply chain disruptions and possible recession.

A weakening US dollar, tumbling global stocks, and investors seeking safe-haven assets have further fueled gold’s rally. According to Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany, these factors are “reinforcing gold’s role as a crisis hedge and inflation shield.”