Gold Climbs to Record High as Trade Tensions and Fed Easing Bets Mount

Gold prices surged to around $4,180 per ounce on Wednesday, marking a new record as investors flocked to the safe-haven metal amid mounting economic and geopolitical risks.

The rally was fueled by heightened US-China trade tensions after President Donald Trump accused Beijing of “economically hostile” behavior for halting soybean imports and warned of possible retaliatory measures, including a cooking oil embargo. The remarks followed China’s threat of further retaliation after imposing sanctions on five US units of South Korean shipbuilder Hanwha Ocean.

Adding to the market’s unease, the ongoing US government shutdown is beginning to strain economic activity, according to officials. Meanwhile, Federal Reserve Chair Jerome Powell cautioned that the sharp slowdown in hiring poses a growing threat to the economy, signaling the possibility of two additional rate cuts this year.

Together, these factors have intensified demand for gold, reinforcing its role as a preferred hedge against uncertainty.