Gold price hits record high amid U.S.-China tensions: Bank of Taiwan

Taipei, April 17 (CNA) The Bank of Taiwan said Thursday that its gold price reached NT$3,518 (US$108.20) per gram at noon -- a record high reflecting risk aversion in global markets due to the trade war between the United States and China.

The bank said its intraday gold passbook price increase represents a 25.6 percent gain since the start of the year, when the price stood at NT$2,801 per gram.

The sharp rise in the price was driven by an influx of capital into gold markets amid escalating tariffs between the United States and China, according to the Bank of Taiwan's international gold market report published Thursday.

It added that a sharp decline in the U.S. Dollar Index had also triggered capital flows into gold markets, pushing gold prices higher.

Citing analysis from asset management firms, the bank noted that gold's appeal has further increased due to the precious metal being less affected by tariffs.

In a report issued this week, the UBS Wealth Management Chief Investment Office said it raised its 12-month price target for gold to US$3,500 per ounce, citing concerns over tariffs, inflation, geopolitical risks, and shifting interest rate expectations.

UBS said demand for gold was also being driven by structural changes in allocation, including a February decision by Chinese regulators allowing insurance funds to invest in gold, and systematic reserve increases by central banks in various countries.