Gold Prices Surge Amid Global Trade Uncertainty

Gold prices have experienced volatility recently, with a sharp sell-off following record highs, attributed to easing U.S.-China trade tensions and profit-taking by investors. Despite a recent correction, analysts and institutions like the World Gold Council maintain a positive long-term outlook for gold, citing ongoing macroeconomic uncertainty, potential stagflation, and geopolitical risks as supportive factors. Gold demand reached its highest first-quarter level since 2016, and investment flows are expected to continue as concerns over U.S. deficits and recession risk persist. While cooling trade tensions have temporarily reduced gold's safe-haven appeal, any signs of weaker U.S. economic data or the prospect of Federal Reserve rate cuts could renew upward momentum for the metal.