Taipei: The Bank of Taiwan announced that its gold price surged to NT$3,518 (US$108.20) per gram at noon, marking a new record high. This increase is attributed to increased risk aversion in global markets caused by the ongoing trade war between the United States and China.

According to Focus Taiwan, the intraday gold passbook price reflects a significant 25.6 percent rise since the beginning of the year, when the price was NT$2,801 per gram. This sharp increase is largely driven by an influx of capital into gold markets as a response to the escalating tariffs imposed by the United States and China.

The Bank of Taiwan’s international gold market report, released on Thursday, highlighted that a notable decrease in the U.S. Dollar Index has also contributed to the capital flow into gold markets, thereby elevating gold prices.

The report further noted insights from asset management firms, indicating that gold’s attractiveness has been enhanced due to the metal’s relative immunity to tariff impacts. The UBS Wealth Management Chief Investment Office, in its recent report, has increased its 12-month price target for gold to US$3,500 per ounce. This adjustment is based on concerns over tariffs, inflation, geopolitical risks, and changing interest rate expectations.

UBS also pointed out that demand for gold is bolstered by structural shifts in investment allocation. This includes a significant move in February by Chinese regulators to permit insurance funds to invest in gold, as well as systematic reserve augmentations by central banks across numerous nations.