Gold prices have reached a new peak, soaring above $3,100 per ounce. This surge came as new tariffs imposed by Donald Trump are set to take effect, prompting investors to pour money into safe-haven assets like gold.
On Thursday, gold futures on the New York Mercantile Exchange touched an all-time high of $3,104.50 per ounce. This marks the first time gold has traded at such elevated levels, reflecting the growing demand from investors.
Why Are Gold Prices Rising?
Experts believe that the ongoing US-China trade war has increased uncertainty in the market. Trump has threatened to impose new tariffs on Chinese imports, which could take effect from December 15. As a result, investors are seeking refuge from risk by investing in gold.
Impact of gold prices on the Stock Market
A market analyst commented, “Whenever geopolitical and economic uncertainties rise, gold becomes a trusted and safe asset.”
The developments have also affected the stock market, with major indexes reporting losses. Investors are now gravitating towards safer investments, with strong demand not only for gold but also for government bonds.
What Could Happen Next of gold prices?
Analysts predict that if the tariffs go into effect, gold prices could climb even higher. However, if positive news regarding a trade deal emerges, prices might soften a bit.
For now, investors need to keep a close watch on trade tensions and central bank policies. Gold’s appeal as a safe-haven asset remains intact, making it a top pick during uncertain times.
Here are 10 multiple-choice questions (MCQs) based on the given passage:
1. What is the new record high price of gold mentioned in the article?
A) $2,500 per ounce
B) $3,000 per ounce
C) $3,100 per ounce
D) $3,104.50 per ounce
Answer: D) $3,104.50 per ounce
2. What major event has led to the surge in gold prices?
A) Decrease in global oil prices
B) Increase in government bond yields
C) New tariffs imposed by Donald Trump
D) Reduction in global gold production
Answer: C) New tariffs imposed by Donald Trump
3. On which exchange did gold futures prices reach the record high?
A) London Metal Exchange
B) New York Mercantile Exchange
C) Shanghai Gold Exchange
D) Chicago Board of Trade
Answer: B) New York Mercantile Exchange
4. What is the primary reason for investors turning to gold, as stated in the article?
A) Increase in stock market returns
B) Devaluation of the US dollar
C) Geopolitical and economic uncertainties
D) Increase in crude oil prices
Answer: C) Geopolitical and economic uncertainties
5. What is the potential impact of the new tariffs on the stock market, as mentioned in the article?
A) Stock market gains
B) Increase in stock prices
C) Stock market losses
D) No impact on the stock market
Answer: C) Stock market losses
6. According to the article, when are the new tariffs expected to take effect?
A) January 1
B) December 15
C) November 30
D) February 28
Answer: B) December 15
7. Apart from gold, what other investment option has gained traction amid uncertainties?
A) Real estate
B) Government bonds
C) Cryptocurrency
D) Corporate bonds
Answer: B) Government bonds
8. What might cause gold prices to soften, as predicted by analysts?
A) Higher inflation rates
B) Positive news regarding a trade deal
C) Rising stock market indices
D) Increase in oil prices
Answer: B) Positive news regarding a trade deal
9. Which of the following best describes gold’s role during economic uncertainties, as per the article?
A) A high-risk asset
B) A volatile commodity
C) A safe-haven asset
D) A speculative investment
Answer: C) A safe-haven asset
10. How are investors reacting to the trade tensions, according to the article?
A) Investing more in the stock market
B) Reducing investment in gold
C) Increasing investments in safe-haven assets
D) Selling government bonds
Answer: C) Increasing investments in safe-haven assets
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