Gold climbed to a record high of $2,903 per ounce after President Trump announced planned tariffs on steel and aluminum. The move heightened market uncertainty, prompting many investors to seek safety in gold.
Investor demand was driven by concerns over trade tensions and their potential impact on global growth, leading to increased buying of bullion as a hedge against risk and currency volatility.
China’s growing gold reserves have also supported prices. Beijing has been steadily adding to its holdings, and a recent policy change permits major insurers to allocate a small portion of their portfolios to physical gold. That allowance—up to 1% of assets for large insurers—could translate into substantial demand for bullion and bolster long-term price support.
While Federal Reserve policy and interest-rate expectations remain key variables that can influence gold’s near-term direction, the combination of geopolitical uncertainty, stronger demand from Chinese institutions and persistent safe-haven buying helped push prices to the historic level.