Gold Prices Near $3,000 as Trade Tensions and Central Bank Demand Surge

Escalating U.S.-China trade tariffs and record central bank gold purchases drive global demand and price growth.

Gold prices have surged nearly 40% over the past year, reaching record highs of over $2,900 per ounce this week, with analysts speculating it could hit $3,000 in the near term.
U.S.-China trade tensions intensified after President Trump imposed a 10% tariff on Chinese imports, prompting retaliatory measures from Beijing, further pushing investors toward gold as a safe haven.
Central banks, particularly in emerging markets like China, Russia, and Turkey, have accelerated gold purchases to diversify reserves and reduce reliance on the U.S. dollar.
The Federal Reserve's recent interest rate cuts and expectations of further reductions make gold more attractive by lowering the opportunity cost of holding the asset.
Geopolitical uncertainties, including ongoing conflicts and economic risks, along with increased use of gold in technology, continue to bolster demand and support the metal's bull market.