The upward trend in gold prices is expected to persist, driven by rising perceptions of risk tied to U.S. President Donald Trump’s protectionist rhetoric. Experts told Anadolu Agency that gold’s role as a safe-haven asset is becoming increasingly prominent amid growing trade uncertainties.
On Tuesday, gold reached a new record high of $3,017 per ounce—up more than 14% since the beginning of the year.
The surge in gold’s value has been fueled by central bank purchases—particularly by the People’s Bank of China—and Chinese investors responding to instability in the real estate sector, along with ongoing geopolitical tensions between Russia and Ukraine, fears of escalating trade wars, and persistent inflationary pressures.
In addition, rising global debt levels, especially in the United States, and a slowdown in inflation data that supports the possibility of a rate cut by the Federal Reserve have also contributed to the rise in gold prices.
Chinese Demand and Gold Flows from London to New York Drive Prices
Sant Manukyan, head of international capital markets at Turkey-based IS Investment, explained that gold prices are being pushed higher by what he called a “geopolitical divergence” between China and the United States, stressing that “this divergence is only going to deepen.”
“At the same time, this divergence breeds uncertainty,” he noted. “On a micro level, the flow of gold from London to New York—driven by fears of tariffs—is one of the factors behind the rise in gold prices per ounce.”
“I see gold moving toward $3,030 to $3,040 for now, but the ultimate target appears to be $3,200 per ounce,” Manukyan said.
He also noted that a potential rate cut by the Fed, along with the resolution of Trump-era tariffs, will be the main factors influencing gold prices going forward.
“It’s important to note that we’re not seeing a liquidity crisis in the markets—there’s no such issue at the moment,” he added. “China and Germany are introducing stimulus packages, but for now, nothing seems to be changing the course of gold.”
