Gold prices have skyrocketed to an all-time high of $3,326 per ounce as investors seek safe havens amidst worsening global trade tensions and a weakening dollar. The surge in gold prices has also lifted the FTSE 100, with goldminers leading the charge.

The recent surge in gold prices is a result of the ongoing trade dispute between the United States and China, with President Trump threatening to impose tariffs on an additional $200 billion worth of Chinese goods. This has led to a wave of uncertainty and fear in the market, prompting investors to flock to safe-haven assets like gold.

Gold, often seen as a safe investment during times of economic and political turmoil, has seen a 12% increase in its value since the beginning of the year. This shows the growing unease among investors about the direction of the global economy in light of Trump’s protectionist policies.

The weakening dollar has also played a significant role in the surge of gold prices. As the dollar continues to lose strength against other major currencies, gold becomes a more attractive option for investors as its value is not tied to any specific currency.

The impact of rising gold prices has been felt across the global market, with the FTSE 100 also seeing a boost due to the performance of goldminers. The index, which represents the top 100 companies listed on the London Stock Exchange, has seen a 1.3% increase as goldmining companies such as Fresnillo and Randgold Resources have reported strong gains.

Investors are not only turning to gold for its safe-haven status, but also as a hedge against inflation. The threat of rising inflation, especially in the US, has prompted many investors to shift their investments to gold as it has historically been a store of value during times of higher inflation.

The surge in gold prices comes at a time when central banks around the world have been increasing their gold reserves. According to the World Gold Council, central banks have bought 264 tonnes of gold in the first half of 2018, the highest amount in six years. This trend is expected to continue as central banks seek to diversify their reserves and reduce their reliance on the US dollar.

The rise in gold prices has also had a positive impact on the mining industry. Many goldmining companies have reported strong earnings and have seen their stocks rise as a result. This in turn has boosted job creation and economic growth in regions where gold mining is a major industry.

Experts predict that the surge in gold prices is likely to continue as long as the global trade tensions persist. In addition, with the recent turmoil in emerging markets and the uncertainty over the direction of the US economy, investors are likely to continue turning to gold as a safe haven.

While the surge in gold prices may be good news for investors, it is also a warning sign of the fragility of the global economy. The ongoing trade disputes and rising geopolitical tensions are a cause for concern and could have far-reaching consequences if not addressed effectively.

In conclusion, the record-breaking surge in gold prices is a clear indication of the growing global unease and uncertainty. With investors seeking safe-haven assets and the weakening of the dollar, gold has emerged as a top performer in the market. While this may be a positive for investors, it also serves as a reminder of the need for stability and cooperation in the global economy. Only then can we see a more sustainable and stable investment climate for all.