Gold Surges to Record High Amid Trade Tensions, Dollar Weakens

Gold prices surged to record highs as escalating trade tensions between the U.S. and China, coupled with a weakening dollar, drove investors toward safe-haven assets. The ongoing tariff disputes and concerns about global economic stagnation have heightened geopolitical risks, leading to increased demand for gold from central banks, particularly China, which has ramped up its reserves. President Trump's aggressive tariff strategy, including steep levies on Chinese goods and threats of reciprocal tariffs against other nations, has fueled market uncertainty. Both China and the U.S. have issued warnings and signaled a hardline stance, with Beijing cautioning against deals that undermine its interests. Market strategists note that while gold remains in high demand, technical indicators suggest the market may be overbought in the short term. Meanwhile, gold-backed ETFs have expanded for 12 consecutive weeks, reinforcing the trend of investors seeking refuge from volatile markets.