• Gold prices soared to a record high of over $3,275 an ounce, driven by escalating trade tensions between the U.S. and China. President Trump's recent actions, including a probe into tariffs on critical minerals, have intensified market uncertainty, prompting investors to seek safe-haven assets like gold. This surge reflects a broader trend of retreat from equities as market participants react to geopolitical risks and economic instability.
• The increase in gold prices is indicative of a significant shift in investor sentiment, with many turning to gold as a hedge against potential economic downturns. The ongoing trade war and the weakening dollar have created an environment where gold is perceived as a more stable investment. This trend may lead to increased volatility in equity markets as investors reassess their portfolios in light of these developments.