Gold prices have experienced an unprecedented historic rise, surpassing the barrier of $2900 per ounce, following the launch of a pilot program by Chinese authorities that allows insurance companies to invest in gold for the first time. This program enables the injection of billions of dollars into the precious metal market, which contributes to the increase in its prices.

This rise coincided with escalating tensions in the global trade war, particularly after U.S. President Donald Trump announced plans to impose new tariffs, raising investor concerns and driving them towards safe havens like gold.

In spot transactions, gold rose by about 1.5%, surpassing the $2900 per ounce level for the first time, reaching a peak of $2903. This marks the seventh increase recorded by gold this year.

According to Bloomberg News, ten insurance companies, including "PICC Property and Casualty Co" and "China Life Insurance Co," will be able to invest up to 1% of their assets in purchasing gold under this program that came into effect last Friday. This means injecting around 200 billion yuan ($27.4 billion) into the gold market.

This shift in insurance sector policies indicates the Chinese authorities' awareness of the scarcity of available investment options and the need for alternatives, especially in light of the slowdown in the real estate market and the economic recession. However, the significant rise in gold prices may make it expensive for many Chinese investors.

In a report by Guotai Junan Securities, analysts noted that insurance companies lack medium- and long-term investment options with fixed returns and face difficulties in investing their funds in products that yield returns commensurate with their obligations, particularly with the strong sales of the savings products they offer.

This upward trend in gold prices is expected to continue, especially with ongoing trade tensions and new investment policies in China, making the precious metal a focal point for investors seeking stability and security in their investments.