Gold Price Surge: Investors Flock to Safe-Haven Assets Amid Trade Tensions

On June 2, the international gold price jumped to over $3300 per ounce, with a gain of 2.09% to $3357.15 per ounce, according to Wind data. The COMEX gold price also rose by 1.85% to $3376.6 per ounce. The news also boosted gold stocks in Hong Kong, with companies such as Tongguan Gold and Ji Hai Resources seeing significant gains of over 18% and 7%, respectively.

The European Union has expressed regret over the US decision to increase tariffs on imported steel and has indicated that it will take countermeasures. The escalation of trade tensions has led some institutions to predict that the gold price may break through the $4000 per ounce barrier by the end of the year. Goldman Sachs has even suggested that if trade tensions escalate into a full-blown trade war, the gold price could reach as high as $4200 per ounce by the end of 2025.

As the gold price continues to soar, investors are becoming increasingly bullish on the precious metal. According to Richard Franulovich, an analyst at Westpac Bank, the unpredictable policies of US President Trump have boosted the appeal of gold as a safe-haven asset. UBS Wealth Management's Investment Office has also revised its gold price forecast upwards to $3000 per ounce over the next 12 months, citing increased uncertainty, a prolonged global easing cycle, and strong demand from investors and central banks.

In China, the surge in gold prices has led to a shortage of physical gold bars, with some platforms showing sold-out signs. The price of physical gold bars is around 690 yuan per gram, making it relatively more affordable compared to gold jewelry, which is priced at around 870 yuan per gram. Some investors are opting for gold accumulation services offered by banks, which allow them to purchase gold at a lower threshold and with more flexibility.

The high gold price has also affected some bank businesses, with China Bank recently adjusting its gold account interest rates. The bank's active annual interest rate has been adjusted to 0.01%, while the three-month, six-month, and nine-month products have been adjusted to 0.1%, 0.1%, and 0.2%, respectively. Overall, investors are increasingly optimistic about the prospects of gold, with many predicting that the upward trend will continue in the coming months.

The surge in gold prices reflects the ongoing uncertainty and volatility in the global market, driven by trade tensions and geopolitical instability. As the situation continues to unfold, it is likely that the price of gold will remain a key focus for investors and market watchers alike. The fundamentals supporting gold's rise are still in place, and the market's risk appetite is likely to remain strong.