Analysis: Gold prices reach historic highs due to trade and geopolitical instability

Golden Finance reports that gold prices hit a historic high on Monday, as concerns over the escalation of global trade wars and unclear geopolitical prospects have enhanced the appeal of gold as a safe-haven asset and inflation hedge. Gold futures prices rose 1.3% in early trading to $3,154.40 per ounce.

So far this year, gold has risen by more than 19%, and its upward trend is expected to continue. Analysts from ANZ Bank's Economic and Market Research Department said: "Strong investment inflows, resilient physical demand, and increased central bank purchases will keep gold strong." Traders are currently waiting for the scope of reciprocal tariffs that US President Trump will impose on major trading partners; these tariffs could increase inflationary pressure and potentially slow global economic growth.