Sandstorm Gold Ltd (SAND) saw its stock price soar 6.59% during intraday trading on Wednesday, as investors flocked to gold-related stocks amid a significant surge in gold prices. The precious metal reached new record highs, with spot gold climbing nearly 3% to $3,071.76 per ounce, driven by escalating global trade tensions and expectations of U.S. interest rate cuts.

As a gold royalty company, Sandstorm Gold Ltd stands to benefit substantially from the rising gold prices. The company's business model, which involves providing upfront financing to gold mining companies in exchange for the right to purchase a percentage of their future gold production at predetermined prices, becomes increasingly profitable as gold prices climb. This sensitivity to gold price movements has made SAND an attractive option for investors looking to capitalize on the current bullish gold market.

The dramatic rise in gold prices can be attributed to several factors. Intensifying concerns about a global trade war, following the implementation of reciprocal tariffs between the U.S. and China, have increased demand for safe-haven assets like gold. Additionally, a weakening U.S. dollar and growing expectations of potential rate cuts by the Federal Reserve have further supported the precious metal's rally. Market participants are closely watching for the release of the Federal Reserve's policy meeting minutes and the U.S. consumer price index for further cues on the economic outlook and monetary policy direction.