Gold rises in price amid expectations of world war

The sides in the Ukrainian conflict have exchanged major blows ahead of peace talks in Istanbul. Coupled with Donald Trump's warnings about a worsening trade war (which he himself started), all this has once again attracted the attention of investors who are turning to the precious metal to reinsure against risks, writes Bloomberg.

Gold has returned to higher prices after falling 2% last week as rising geopolitical and trade tensions have renewed demand for safe-haven assets.

President Donald Trump also added to concerns about global trade over the weekend, vowing to double import tariffs on foreign steel and aluminum to 50%, and Canada's industry minister warned that Canada would retaliate. There are also signs that the truce between the U.S. and China is in jeopardy after Trump accused Beijing of reneging on a deal reached last month.

Precious metals rose 0,8% in Asia after Ukraine launched a series of drone strikes across Russia on Sunday, hitting airfields as far away as eastern Siberia. Around the same time, Moscow launched one of its most sustained attacks yet on Kyiv, ahead of key peace talks this week.

Thus, gold is rising in price amid expectations of a deep conflict, or world war. After a slight pullback from the pedestal of the world price of gold ($3500), the precious metal is growing again. Goldman Sachs Group Inc. said last week that gold will continue to be a hedge against inflation in long-term portfolios, along with oil.