Gold soars as trade tensions and geopolitical risks rise
Gold prices are on the rise due to mutual accusations between the US and China regarding alleged violations of the trade agreement, as well as tensions in Ukraine. Investors are seeking safe assets, which is driving up the value of the precious metal.
The price of gold rose on Monday, due to increasing demand for safe assets amid global tensions. Investors are concerned about the potential resumption of a trade war between the US and China, prompting them to consider investing in gold.
An additional factor contributing to the rise in gold prices is the situation in Ukraine. Drone attacks on Russian airfields and large-scale raids by Moscow on Kyiv increase market uncertainty. In this context, gold gains value as a stable investment.
The increase in gold prices is also linked to US decisions concerning tariffs on steel and aluminium. President Trump's decision to double tariffs weakened the dollar, making gold more attractive to foreign investors. Analysts from Goldman Sachs emphasise that gold remains an effective hedge against inflation.
Gold hits record highs
Gold prices reached a new record level in April, surpassing €3,252.60 per 28 grammes.
Analysts at Goldman Sachs predict that the price of gold may reach €3,837.60 per 28 grammes by mid-2026.
Central banks, including the NBP, are also investing in gold.
