This is reported by RBK-Ukraine, referencing Reuters. Reports are also provided by Kontrakty.UA.
On February 20, the spot price of gold rose by 0.1% to $2,936.38 per ounce, earlier during the session it reached $2,954.69, marking the tenth record this year.
Gold futures in the U.S. increased by 0.7% to $2,956.10. Overall, bullion prices have risen by approximately 12% this year.
What about other precious metals
The spot price of silver increased by 0.6% to $32.92 per ounce.
Platinum rose by 0.7% to $978.05, while palladium increased by 1% to $978.02.
Why is gold becoming more expensive
According to Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals, the ongoing trade tensions "continue to heighten inflation and concerns about economic growth," thus increasing interest in gold.
The day before, Trump announced that he would introduce tariffs on lumber, cars, semiconductors, and pharmaceuticals "within the next month or sooner."
It is also worth noting that after taking office as President of the United States on January 20, Trump imposed a 10% tariff on Chinese imports and a 25% tariff on steel and aluminum.
Minutes from the most recent political meeting of the U.S. Federal Reserve on Wednesday, February 19, showed that Trump's initial policy proposals raised concerns about rising inflation. This confirmed the central bank's stance on refraining from further rate cuts.
According to Swiss customs data, gold exports from Switzerland in January increased compared to the same period last year, as shipments to the U.S. reached the highest level in the last 13 years.
Additionally, according to The Independent, Ukraine is expected to lose a billion hryvnias annually due to American tariffs on steel.
Why people buy gold
Previously, RBK-Ukraine reported that gold is often purchased as a safe haven or investment for several reasons:
Protection against inflation. Gold is considered an inflation hedge because its price typically rises during periods of high inflation. This is due to gold being a limited resource with a finite supply in the world.
Geopolitical instability. Sometimes global events such as conflicts, economic crises, political unrest, etc., can significantly impact currencies and financial markets. Gold is seen as a more stable asset under such conditions.