On the Shanghai Futures Exchange, trading volumes for gold reached the highest level in a year last week. This was due to investors, refiners, traders, and retailers increasing their purchases in response to the trade policy turbulence.
China's central bank increased its gold holdings by approximately 2.8 tons in March, the fifth consecutive monthly addition. In 2019, China's central bank expanded its gold holdings by more than 100 tons after relations deteriorated with the US during Donald Trump's first term.
Demand for gold is expected to increase as investors seek a safe haven as the trade war between the world's two largest economies continues to escalate.
The American megabank Goldman Sachs predicts that the gold price may have risen from today's 3,200 dollars per ounce to 4,000 dollars per ounce next year due to the increased demand.
