Gold prices have surged to a three-month high, reaching nearly USD 4,700 per troy ounce, as escalating tariff tensions between the US and Canada and growing concerns over US debt drive investors toward safe-haven assets, according to Commerzbank’s Carsten Fritsch [1]. The price of gold increased by more than 5% last week and continued its upward trajectory at the start of the new trading week [1].
The rally in gold has been supported by robust inflows into gold-backed ETFs, with the World Gold Council reporting the strongest weekly inflows in ten months, totaling 46.7 tons. Of these inflows, 30.4 tons originated from North America and 13.8 tons from Europe, indicating broad-based investor interest [1].
Commerzbank notes that, as in previous periods of tariff dispute escalation, gold’s rise is linked to concerns that such conflicts could undermine the US dollar’s reputation as a reserve currency and safe haven [1]. The bank also observes strong indications that ETF purchases will persist and that gold prices are likely to continue rising in the near term [1].
CONCLUSION
Gold has experienced a significant rally, driven by US–Canada tariff tensions and strong ETF inflows, reaching its highest level in over three months. Market sentiment remains positive, with expectations of continued price gains as investors seek safe-haven assets.