Gold Prices Rise Amid US-China Trade Tensions: Reasons for Attention 📈

Hello everyone! Looking at economic news lately, the movement of gold prices seems to be a very hot topic.

I was also really intrigued by these news stories. In particular, there are many reports of gold prices skyrocketing as the trade conflict between the United States and China enters a new phase.

Why are gold prices fluctuating so much?

Recently, on Monday's Essence trading session, gold closed at $4,118.30. This is a 1.1% increase from the previous Friday's close of $3,975.90. During early trading, gold also showed a rise, reaching $4,099.60 per ounce. Truly a remarkable surge, isn't it?

One of the primary reasons for this gold price increase is the news that commercial research between the US and China has been deleted. This has caused gold prices to break past $4,000 per ounce.

Furthermore, President Trump stated that the US is taking additional export control measures and may impose tariffs of up to 100% on Chinese imports. These geopolitical tensions and changes in trade policy are increasing the preference for safe-haven assets, acting as major drivers for the rise in gold prices.

Who Determines the Movement of Gold Prices?

So, how exactly are gold prices determined? According to a Yahoo Finance article, there are two main gold prices that investors need to be aware of: the spot price and the futures price.

The spot price refers to the price at which gold can be bought or sold immediately in the current market, while the futures price is the price agreed upon to buy or sell gold at a specific point in time in the future. These two prices are determined by various factors such as market supply and demand, interest rates, currency values, and geopolitical events.

Moreover, precious metals like gold are crucial raw materials in advanced industries such as smartphones and electric vehicles. Therefore, the growth of these industries and technological advancements can also influence gold prices.

What is the Relationship Between Our Daily Lives and Gold Prices?

Changes in international affairs, such as the US-China trade conflict, directly impact gold prices, and these price fluctuations can ultimately cause ripples, big or small, across our entire economy. It's possible that they could even indirectly affect the prices of electronics or automobiles we use.

What are your thoughts on the recent surge in gold prices? Are you interested in gold investments? Please share your thoughts in the comments! 😊

I hope we can continue to keep a close eye on gold price movements and explore their impact on our lives together.

Have a peaceful day today! ✨