Gold hits all-time high amid US-China tensions

Gold prices hit a new all-time high on Friday, surpassing $3,200 per ounce, amid growing fears of a global economic recession and escalating tensions in the US-China trade war.

According to global market data, spot gold rose 1.7% to $3,227.39 per ounce, after touching a record high of $3,237.56 earlier on Friday. US futures rose more than 2% to $3,246.30.

This rise is attributed to the decline in the US dollar, which made the yellow metal more attractive to investors, in addition to China's decision to raise tariffs on US imports to 125%, in direct response to US President Donald Trump's decision to increase tariffs on Chinese goods to 145%.

Expectations indicate a continued upward trend. Experts at UBS expect gold prices to reach levels ranging between $3,400 and $3,500 per ounce in the coming months, citing financial uncertainty and increased demand from central banks.

Recent US economic data, including a decline in the consumer price index, also contributed to the possibility that the US Federal Reserve will resume cutting interest rates in June, with the possibility of an additional cut of up to a full percentage point by the end of the year.

Gold posted weekly gains of more than 6%, while silver continued to rise by 0.8% in spot trading

(Source:INA)