Gold's Rise Continues, Global Tensions Spark Massive Buying
Gold prices continued to show significant strength on Monday entering the Washington session, breaking a new record amidst a wave of safe-haven demand. Spot gold briefly touched a new peak of $4,096.56 per ounce. The main driver came from the escalation of US-China trade tensions, which triggered investors to flee to relatively safe assets.
As President Donald Trump threatened to impose 100% tariffs on Chinese goods, hopes for more relaxed negotiations fueled market optimism. However, despite the surging momentum, several analysts warned of the potential for a short-term correction. Gold prices, which have risen rapidly in a limited time, have opened up room for profit-taking. Moreover, uncertainty surrounding the Federal Reserve's monetary policy—particularly the timing and extent of interest rate cuts—remains a factor that will test the strength of this rally.
Looking ahead, the medium-term outlook remains positive. Bank of America, for example, has raised its gold price target to US$5,000 per ounce by 2026, indicating expectations that safe-haven demand and macroeconomic pressures will continue to drive the upward trend. For investors, a diversification strategy while monitoring geopolitical issues and monetary policy may be a wise approach during times of volatile precious metals markets.
Source: Newsmaker.id
