Gold prices have surpassed $3,000 an ounce for the first time in history as investors seek safe-haven assets amid concerns over US tariffs and geopolitical tensions.
CNN reported that the price of gold reached a historic level of $3,005/ounce on March 14, although it later fell back below $3,000/ounce.
World gold price sets historic milestone on March 14 amid global instability
The sharp rise in gold prices is one of many signs that investors are worried about the US economic outlook, according to former US Treasury Secretary Larry Summers. Rising gold prices are a sign of uncertainty, he said. "That's what people do when they don't have confidence in the people running the country," Summers said.
On March 12, the US began collecting a 25% tax on all imported aluminum and steel, leading to a quick response from Canada and the European Union (EU).
On March 13, Mr. Trump also threatened to impose a 200% tax on alcoholic beverages from the EU unless the union withdrew the 50% tax imposed on American wine a day earlier.
Trump tariffs on metal imports take effect, EU quickly retaliates
The White House's trade policies have created uncertainty that is paralyzing businesses as they wonder whether to invest at this time. Those factors have raised concerns about a global recession.
The conflict in Ukraine is also a factor that has pushed gold prices to a new high. On March 13, Russian President Vladimir Putin said he supported the ceasefire, but he raised many questions about the US proposal and proposed conditions that Ukraine would find difficult to accept.
Russia’s move could be seen as a protest, rekindling geopolitical uncertainty. The prospect of a prolonged conflict should underpin gold prices in the long term.
Trevor Greetham, senior investor at Royal London Asset Management, said the current price of gold is 60% higher than when Russia began its military campaign in Ukraine in 2022. Gold has increased in price by nearly 14% this year, partly due to concerns about the impact of the tariff war between the US and other countries, which led to the recent stock market sell-off, according to Reuters.
“Central banks, including the People’s Bank of China, have been adding to their gold reserves rather than risk having their foreign reserves seized as happened to Russia,” said Mr Greetham.
Source: https://thanhnien.vn/gia-vang-the-gioi-lan-dau-vuot-moc-3000-usd-18525031509393007.htm
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