Gold price over 4,000 dollars: record hunt in the shadow of the tariff war!

Gold price over 4,000 dollars: record hunt in the shadow of the tariff war!

The price of gold hit a new record at the beginning of the week and rose to as much as $4,078 per ounce (31.1 grams). This is the first time gold has exceeded the $4,000 mark, and that was just last week. This is now the seventh record high in the last eleven trading days Black Forest messenger reported. Year to date, the price of gold has increased by over 55%, marking the highest increase since 1979.

The latest increases are heavily influenced by the ongoing trade dispute between the USA and China. President Trump has announced 100% tariffs on Chinese imports, prompting Beijing to threaten countermeasures. These geopolitical tensions continue to drive demand for gold as a safe investment. Another factor driving up the price is the uncertainties along the political front, particularly with the US government “shutdown” and the high level of debt, which is now over 120% of GDP.

Gold outperforms Bitcoin and other assets

Gold has performed better than many other assets recently, including Bitcoin. Last week, Bitcoin reached a high of over $126,000, but quickly fell back to just under $115,000. Since the end of 2024, Bitcoin has gained about 25%, but nowhere near as much as gold, which has risen over 140% in the same period. In comparison, gold has seen a 140% increase since October 2022, while Bitcoin has gained almost 500% over the past three years.

Gold is indeed ahead in many aspects. According to analysts, there are several reasons for the increase: political crises, the devaluation of the US dollar and high global inflation are driving investors to invest in gold. Interest in gold-backed ETFs, which remain popular, is also providing additional impetus. According to the daily news Analysts such as Goldman Sachs and UBS even expect further price increases.

The future of gold and investor strategies

Even in times of economic crisis, gold remains a sought-after asset. Recently, central banks, particularly from Turkey and China, have purchased large amounts of gold to diversify their currency reserves and hedge against inflation. In fact, there have recently been high purchases of gold by central banks, which stored over 1,000 tons in 2022 and 2023. These developments support forecasts for future price increases.

It is advisable for investors to integrate gold into a diversified portfolio, with 5-10% of assets invested in gold. Strategies such as gradual investment and the choice between physical gold, ETFs or shares in mining companies are possible. Increased demand and geopolitical uncertainties suggest that investors should not expect this trend to end quickly. Loud MS current Patience remains a virtue in such a volatile market, and hasty selling is not advisable.