What is driving the recent surge in gold prices to record highs, and how do geopolitical tensions relate to this market movement?

Gold prices have reached historic highs and maintained gains for seven consecutive weeks, primarily driven by fears of an escalating global trade war. The surge is directly linked to the Trump administration's aggressive tariff policies, which impose duties on countries that charge tariffs on US imports, creating a zero-sum approach to international trade. This dramatic rise in gold prices reflects investors' flight to safe-haven assets amid mounting global economic uncertainties. The precious metal traditionally serves as a hedge against geopolitical instability and currency devaluation, making it particularly attractive during periods of international trade tensions. The current market dynamics demonstrate how political decisions and trade policies can have immediate and significant impacts on financial markets, with gold emerging as the preferred investment choice for those seeking protection against potential economic disruption.