As global economic uncertainty grows, investors are increasingly turning to a timeless asset to protect their wealth: gold. The precious metal's recent market performance tells a compelling story of its enduring appeal during turbulent times.

Last week's announcement by former President Donald Trump to impose tariffs on imported goods, including steel and aluminum, has intensified tensions in global financial markets. This development has fueled a significant rally in gold prices, pushing them toward historic highs.

Gold prices climbed 2.2% over the past week and maintained their upward trajectory on Monday (10th), staying firmly above $2,880 per ounce. The metal briefly touched a record high of $2,886.79 on Friday as investor demand for safe-haven assets surged dramatically.

While the exact implementation timeline remains unclear, markets reacted swiftly to Trump's Sunday announcement of 25% tariffs on steel and aluminum imports from all countries. Richard Franulovich, an analyst at Westpac Banking Corporation, noted in a recent report: "Gold is in an advantageous position with virtually no obstacles in its path." He emphasized that the Trump administration's unpredictable policies and tariff threats against trade partners have significantly enhanced gold's attractiveness as a hedge against instability.

Investors are also closely monitoring Federal Reserve Chair Jerome Powell's congressional testimony scheduled for Tuesday and Wednesday, seeking clues about the future direction of U.S. monetary policy. Powell is expected to highlight the resilience of the American economy - a key reason why Fed officials show no urgency to implement further rate cuts. In theory, this development could weigh on gold prices, as the non-yielding asset becomes less attractive when interest rates rise.

Yet gold continues to captivate investors as a reliable store of value during periods of uncertainty. Market participants are carefully assessing whether the new administration's trade and immigration policies might reignite inflationary pressures or impact economic growth, potentially creating ripple effects across U.S. economic policy and monetary decisions.

Adding to the bullish sentiment, the People's Bank of China increased its gold reserves for the third consecutive month in January. This move demonstrates central banks' commitment to diversifying their reserves even with gold trading near record highs. As global economic turbulence persists, the precious metal's status as the asset of choice for both investors and national banks appears more secure than ever.