Global Economy: How Trade Wars Affect Gold Prices

Trade wars and geopolitical tensions have a significant impact on gold prices. When countries impose tariffs or engage in trade disputes, it creates uncertainty in global markets, leading investors to seek the safety of gold. For example, the US-China trade war in the late 2010s saw gold prices rise as investors anticipated economic slowdowns and market volatility. Similarly, recent tensions between major economies have once again driven demand for gold.