At the opening of the first trading session of the week this morning, gold prices continued to surge strongly beyond expectations, setting a new peak around the 5,088 USD/ounce level.
The main driver behind this sharp rally comes from rumors that the United States plans to impose tariffs on Canada if Canada reaches a trade agreement with China.
Mr. Trump believes that China is using Canada as a transshipment hub to evade U.S. tariffs. Therefore, he stated that the U.S. would not make concessions if Canada accommodates China’s interests in this matter.
In addition, the United States announced that it has completed the deployment of warships to the Middle East. This has raised concerns that the U.S. may intervene in Iran, thereby escalating the conflict between Iran and Israel.
Rising tariff tensions and fears of an outbreak of geopolitical conflict have propelled gold prices sharply higher this morning, with no clear signs that the rally is slowing down.
In the context of investors continuously turning to gold as a safe-haven asset, gold prices are likely to continue rising strongly and could reach the 5,200–5,300 USD/ounce range in the short term.
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