Why Did Gold Prices Surge To a Record This Week? | Global News Avenue

Anxiety over escalating trade wars and U.S. economic growth has brought investors into tradition haven.

Gold rose $3,016/ounce earlier on Friday, and nearly 4% of metal’s stock price has been lower since the start of the week. Meanwhile, the 500 index before Friday is expected to be its worst week in two years. Gold cut its earnings at its meeting on Friday, and stocks rebounded.

Gold has pushed forward this week’s stocks this week as stocks fall. recent inflation and Employment Data shows that the economy remains firm and investors are More and more nervous President Trump’s unpredictable tariff policies will increase costs for businesses and consumers and slow economic growth.

Worrying that the United States is heading for a period Stagnant– It is unlikely to pair up inflation with weak growth – has sent investors into safe haven assets such as gold and the U.S. Treasury Department. Gold is seen as Reliable store of valuehedging inflation and asset prices decline. Increased uncertainty could lead to higher gold prices, just like the leader of the November presidential election

Treasury yields are also in play Significantly decreased This has also been a by-product of investors flying to safety over the past two months. Treasury yields are inversely proportional to Treasury prices, which means yields are falling as demand for U.S. debt (the closest market to risk-free assets) is reduced. Gold has no production; investors only make profits when its prices rise. Therefore, as yields fall, U.S. Treasury bonds are less attractive to gold, which may help drive gold upside.