Gold prices are on track for a fifth weekly rise as investors seek safe havens amid geopolitical concerns and economic uncertainty. Spot gold hit a record high of $2,800 on Friday, before settling around $2,795 later in the day. The rally accelerated after U.S. President Donald Trump revived plans to impose 25 percent tariffs on imports from Mexico and Canada.
Historically, gold has been seen as a safe haven against economic uncertainties and volatility. Considered a hedge against inflation and currency fluctuations, gold continues to serve this function today. According to experts, the US’s tariff policies and increasing geopolitical tensions are directing investors to less risky assets. This increases the potential for gold’s price to rise above $2,800.
İş Yatırım Deputy General Manager Şant Manukyan, one of the leading names in international financial markets, evaluated this increase in gold prices as a “geopolitical rise.” In his statement dated January 31, Manukyan stated that this rise was not a financial or economic-based movement and made the following statements:
This comment by Manukyan was followed carefully among investors. Pointing out a similar situation in another assessment dated January 3, the analyst said:
Currently, gold continues to gain value due to geopolitical concerns and trade wars. However, as Manukyan stated, this rise cannot yet be considered a “main rise”. A period in which economic and financial factors may have a stronger impact on gold prices is expected to occur in the future.