After China decided to impose retaliatory tariffs on US goods, investors sought safe havens. This caused the world gold price to conquer a historical peak on February 4.

World gold prices reached a historic high on February 4, as investors sought safe havens after China decided to impose retaliatory tariffs on US goods.

Spot gold rose 1.1% to $2,844.56 an ounce at 1:40 a.m. (February 5, Vietnam time), after hitting a record high of $2,845.14 an ounce earlier in the session. US gold futures closed up 0.7% at $2,875.80 an ounce.

Bob Haberkorn, senior market strategist at financial services firm RJO Futures, said the tariff news was the main driver behind gold prices.

He also added that a weaker US dollar also supported gold prices as it made the precious metal cheaper for holders of other currencies.

China has quickly imposed tariffs on US imports in response to new tariffs imposed by President Donald Trump, escalating the trade war between the world's two largest economies.

Three Federal Reserve officials have warned of inflation risks from the Trump administration’s tariff plans, with one saying uncertainty about the price outlook requires the Fed to cut interest rates more slowly than expected.

Gold is often seen as a hedge against both inflation and geopolitical instability, but higher interest rates reduce the appeal of the non-yielding asset.

Jim Wyckoff, senior market analyst at precious metals site Kitco Metals, predicts that gold prices could hit $3,000 an ounce this year, due to the unpredictability of the current U.S. administration creating uncertainty in the market, combined with the possibility of central banks increasing their purchases of gold to diversify away from the U.S. dollar.

In other precious metals, spot silver rose 2.5% to $32.33 an ounce. Platinum rose 0.4% to $967.94 an ounce.

In Vietnam, at the close of the session on February 4, the price of SJC gold in the Hanoi market was listed by Saigon Jewelry Company at VND87.60-90.10 million/tael (buy-sell)./.