Gold Price Reaches Record High After Trade Conflicts
(MENAFN) On Monday, the price of gold surged to an all-time high, with an ounce reaching USD3,405.19 as global trade uncertainties drove investors toward the "safe haven" asset.
After achieving this record, gold's price remained around USD3,404.40 at 1200GMT.
The precious metal's value increased by over 2.3 percent on Monday, setting a new peak as concerns about the potential intensification of the trade conflict between the world’s two largest economies heightened investor anxiety.
Gold's rise was further fueled by central banks' tendencies to lower interest rates. Last week, the European Central Bank reduced its rates by 25 basis points, which contributed to the increase in gold’s value.
The price spike became more pronounced after US President Donald Trump declared "reciprocal" tariffs on more than 180 countries on April 2.
China was the first nation to retaliate, matching the US tariff hike.
As a result of the ongoing tariff battle, the US raised tariffs on Chinese goods to 145 percent, while China retaliated with a 125 percent tariff on US products.
As the US government delayed the implementation of broader tariffs on other countries for 90 days, those targeting China were enforced immediately.
Additionally, the US government prohibited the export of Nvidia's H20 chips to China, and on April 15, the White House announced that China now faces tariffs as high as 245 percent due to its retaliatory measures.
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