14 April | Gold

China’s growing interest fuels gold price surge — Reuters

China’s growing interest fuels gold price surge — Reuters

Gold prices reached record highs on Friday, reportedly hitting $3,245.28 an ounce, driven by investor concerns over escalating United States tariffs, according to Reuters. This marks a 28% increase since mid-November. The unpredictable trade policy of Washington's leadership has eroded confidence in safe-haven assets like US Treasuries and the dollar, fueling increased interest in gold, particularly in China, the world’s largest buyer of the metal. Notably, the difference between global gold prices and prices in the PRC's market, the so-called “China premium,” reached a record $39 per ounce on April 11, according to the agency.

Analysts at Reuters predicted this high cost would dampen demand in India, the second-largest buyer. However, strong interest from Chinese private investors and central banks continues to provide significant support for gold prices. 

Furthermore, the agency notes that increased market volatility could push gold even higher. Conversely, a resolution of the current market or geopolitical uncertainties would likely reduce the metal's safe-haven appeal.

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