Global trade tensions due to Trump's import tariffs fuel gold's rally

Analysts compare the current surge in gold prices to the turbulent period of the 1980s, when political and economic instability caused a similar rise in the precious metal's price, Reuters reports.

On the one hand, these time periods can be characterized by a high degree of uncertainty, pushing traders to invest in safe-haven assets. However, several experts are cautious about drawing parallels between these periods. Some of them consider the current gold rally to be more sustainable due to the high level of global tensions.

Last week, the yellow metal set a new record at $3,167 per ounce. Another surge was caused by US President Donald Trump's statements about new import tariffs. The threat of a global trade standoff is increasing investor fears, boosting gold demand, Reuters comments.

The dollar is also considered a safe-haven asset. However, the current circumstances and unpredictable actions of the US President make it less appealing than the precious metal, the agency reports.