News Analysis
The price of gold soared to a new high after China imposed retaliatory tariffs on exports from the United States. The yellow metal is in high demand as central banks and investors increase their gold reserves in anticipation of a worsening U.S.–China trade war.
The global investment demand for gold increased by a quarter year-on-year in 2024, reaching a four-year high of 1,180 metric tons (42 million ounces), according to a Feb. 5 report by the World Gold Council, a London-based international trade association for the gold industry.
Central banks increased their gold holdings for three consecutive years, totaling more than 1,000 metric tons (35 million ounces) last year….