Gold Hits Record High as Trump Tariff Threats Spark Global Flight to Safety

Trade War 2.0 and Safe Haven Inflows

The sudden escalation of trade friction between the US and its European allies has blindsided markets. Analysts at Saxo UK and J.P. Morgan note that institutional investors are switching out of equities and into bullion to hedge against a potential global trade slowdown and the inflationary impact of new tariffs.

Central Bank and 2026 Targets

J.P. Morgan Global Research has upgraded its year-end 2026 target to $5,055/oz, citing that the structural trend of central bank diversification remains robust. With 585 tonnes of quarterly net demand expected this year, gold is effectively decoupling from traditional interest rate correlations.