Safe haven demand pushes gold prices to new highs

World gold prices continue to set records as concerns about a global trade war push investors to seek safe havens.

Illustration: (Source: Vietnam+)

In the trading session on February 20, the world gold price continued to set a record as concerns about the global trade war prompted investors to seek safe havens.

Specifically, the spot gold price at one point jumped to $2,954.69/ounce, marking the 10th record high of the year.

Meanwhile, the price of gold futures in the US closed up 0.7% to $2,956.10/ounce. Since the beginning of the year, the price of this precious metal has increased by about 12%.

Peter Grant, vice president and senior metals strategist at precious metals brokerage Zaner Metals, said escalating trade tensions continue to raise concerns about inflation and economic growth, thereby boosting demand for safe haven gold.

President Trump recently announced that he will announce new tariffs on lumber, autos, semiconductors and pharmaceuticals next month or sooner.

Since taking office on January 20, Mr. Trump has imposed a 10% tariff on imports from China and signed an executive order imposing a 25% tariff on steel and aluminum.

Central bank gold purchases throughout the year have been one of the main factors supporting gold prices, said Phillip Streible, a strategist at brokerage Blue Line Futures.

Besides, the market also witnessed capital inflows into gold ETFs for three consecutive days.

On February 20, Ukrainian Foreign Minister Andrii Sybiha said he discussed with US special envoy Keith Kellogg measures to achieve a just and lasting peace in the conflict with Russia.

Mr. Kellogg's visit to Kiev comes at a time when the United States, Russia and European countries are seeking a solution to end the nearly three-year conflict between Russia and Ukraine.

Mr. Grant said a potential peace deal could ease geopolitical tensions in the short term and put pressure on gold prices.

However, he believes that the current record high could last for several weeks. However, according to Mr. Grant, gold is still in an uptrend, thanks to strong fundamentals supporting the price of this precious metal.

Minutes of the US Federal Reserve's most recent policy meeting released recently showed that Mr Trump's initial policy proposals raised concerns about rising inflation and reinforced the Fed's view of pausing interest rate cuts.

Swiss gold exports rose in January from a year earlier, as shipments to the United States jumped to their highest level in at least 13 years, data from the Swiss customs agency showed.

In Vietnam, at the end of February 20, Saigon Jewelry Company (SJC) listed the selling price of SJC gold bars at 90 - 92.3 million VND/tael (buy - sell).

Source: VNA

Source: https://baophutho.vn/nhu-cau-tru-an-an-toan-day-gia-vang-tiep-tuc-lap-dinh-228257.htm