The Bank of Taiwan (臺灣銀行) yesterday said that its gold price reached a record-high NT$3,518 (US$108.14) per gram at noon as the trade war between the US and China raged on.
The state-run bank said its intraday gold passbook price has increased 25.6 percent since the start of the year, when the price stood at NT$2,801 per gram.
The sharp rise in the price was driven by an influx of capital into gold markets amid escalating tariffs between the US and China, the bank said in its international gold market report.
Photo: EPA-EFE
A sharp decline in the US Dollar Index has also triggered capital flows into gold markets, pushing prices higher, the bank said.
Gold’s appeal has further increased, as the precious metal is less affected by tariffs, the bank said, citing analyses by asset management firms.
Bullion yesterday rose as much as 0.4 percent to US$3,357.78 an ounce in Singapore, before paring gains. The metal added 3.5 percent on Wednesday in its biggest one-day gain since March 2023, as the US dollar fell to a fresh six-month low. The precious metal has climbed almost 28 percent this year, outpacing the 27 percent gain it notched last year.
“The big theme is uncertainty,” which is benefiting gold, ABC Refinery (Australia) Pty Ltd global head of institutional markets Nicholas Frappell said. “Uncertainty about the scale and breadth of tariffs, uncertainty over the strategic plan of the US administration and the degree to which America’s trade partners will respond.”
The UBS Wealth Management Chief Investment Office in a report this week said it has raised its 12-month price target for gold to US$3,500 per ounce, citing concerns over tariffs, inflation, geopolitical risks and shifting interest rate expectations.
UBS said demand for gold was also being driven by structural changes in allocation, including a February decision by Chinese regulators allowing insurance funds to invest in gold, and systematic reserve increases by central banks in various countries.
Additional reporting by Bloomberg
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