Gold prices have surged to an all-time high above $3,200 an ounce, climbing as much as 2.1% to $3,244.15 on Friday and heading for a weekly increase exceeding 6%.
“Gold is the best place to be in the market now. The unprecedented trade tension has deepened the distrust of US dollar, intensifying the demand for other safety assets.” according to Liu Yuxuan, a Shanghai-based precious metal researcher at Guotai Jun’an Futures Co.
Yuxuan’s assessment reflects the market reality as President Trump’s flip-flopping on tariffs has triggered frantic selloffs in US stocks, bonds, and the dollar. With tariffs now set to halt almost all trade between the US and China, and China retaliating by increasing duties on all US goods, investors are questioning whether US debt remains a safe haven. This deteriorating confidence in traditional dollar-based assets has driven investors toward gold as an alternative store of value.