Gold Prices Hit Record High, All Assets Shaken... What Now?

International Oil Prices Plunge Again
Amid Renewed US-China Tensions
Gold Surges to Record High as Investors Seek Safe-Haven Assets

President Donald Trump announced a 90-day suspension of reciprocal tariffs for all countries except China, causing all assets to fluctuate. International gold prices surged over 3% that day, reaching an all-time high.

According to foreign media on the 11th, international gold prices hit a record high due to continued tariff uncertainty and a preference for safe-haven assets. The nearby gold futures closing price rose 3.2% from the previous session to $3,177.5 per ounce.

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Due to the risk of tariff imposition by President Trump, demand for safe-haven assets increased, pushing gold prices up to 163,530 KRW on February 16. However, as the tariff imposition date approached, demand for holding cash grew stronger, causing gold prices to fall. With the tariff suspension, prices appear to have turned upward again.

The June delivery Brent crude oil futures closing price fell $2.15 (3.28%) from the previous session to $63.33 per barrel. Investors expressed concerns that the high tariff rates on China would lead to an economic downturn and reduced oil demand.

The White House confirmed that since the Trump administration took office, the total tariff rate imposed by the U.S. on Chinese imports amounts to 145%, which includes the 125% reciprocal tariff rate plus an additional 20% tariff related to synthetic drug fentanyl announced earlier. China announced tariffs of 34% on U.S. imports in response to the initially announced 34% reciprocal tariffs by the U.S., and when the U.S. imposed an additional 50% to raise the reciprocal tariff to 84%, China retaliated with matching 84% tariffs. Subsequently, the U.S. increased reciprocal tariffs to 125%.

Henry Hoffman, co-portfolio manager of Catalyst Energy Infrastructure Fund, expressed concern, saying, "If the trade war lasts much longer, the global economy will suffer significant economic damage."

There were also voices of concern regarding the record-high gold prices. Nikos Chaburas, senior market analyst at trading platform Trado, said, "Gold is regaining its appeal as a safe-haven asset and is moving again toward an all-time high."