TAIPEI (Taiwan News) — Gold prices in Taiwan reached a record high of NT$3,518 (US$108.20) per gram on Thursday, reflecting risk aversion in markets amid an escalating US-China trade war.

The Bank of Taiwan’s intraday gold passbook price rose 25.6% since January, from NT$2,801 per gram to NT$3,518, per CNA. Bullion prices have risen by almost 28% this year, surpassing the 27% gain in 2024.

The run-up in gold prices has been driven by escalating US-China trade tensions and tariffs-related fears and uncertainty, according to Bloomberg. Investors hoping to mitigate risks may seek gold, which is seen as a “safe haven” compared to stocks or traditional commodities. 

The Bank of Taiwan’s gold market report showed that record prices were driven by an influx of capital into gold markets. A weakening of the US dollar also led to increased capital flows into gold markets, it added. 

Meanwhile, the UBS Wealth Management Chief Investment Office increased its 12-month price target to US$3,500 per ounce of gold. Its report voiced concerns about tariffs, geopolitics, interest rate expectations, and inflation.

UBS also noted changes in allocation as driving demand for gold. Reuters reported in February that China's financial regulator increased limits for insurance funds’ investment in the stock market, including allowing investment in gold.