Gold prices soared to record highs, surpassing the key $3,200 mark on Friday as mounting economic uncertainty, a weakening U.S. dollar, and escalating trade tensions reignited demand for safe-haven assets.
Gold Prices Hit Historic Levels
- Spot gold jumped over 1% to $3,214.92/oz by 0801 GMT, after reaching an all-time high of $3,219.84/oz earlier in the session.
- U.S. gold futures rose nearly 2% to $3,233.80/oz.
- Gold is now up more than 5% this week and 21% year-to-date, continuing its powerful rally.
Why the Surge? Economic Worries & Trade Turmoil
According to Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany:
“Recession risks are mounting, bond yields are soaring, and the U.S. dollar continues to weaken – all factors reinforcing gold’s role as a crisis hedge and inflation shield.”
Adding to investor anxiety, U.S. President Donald Trump intensified tariffs on Chinese goods despite briefly pausing reciprocal tariffs on other nations. The ongoing trade war and unpredictable policy shifts have spooked markets and heightened global economic risk.
Dollar Weakness Adds Fuel to Gold Rally
The U.S. dollar index fell to a decade low, making dollar-denominated gold more attractive to foreign buyers. Meanwhile, global equities slipped, reflecting broader investor unease.
The drop in U.S. consumer prices in March and anticipation of lower producer price data added to speculation that the Federal Reserve may resume rate cuts, with traders betting on a full 1% reduction by the end of 2025.
Gold May Climb Even Higher
Analysts see more room for upside. UBS analyst Giovanni Staunovo said:
“We believe gold has further to run — in the upside case, we target USD 3,400–3,500/oz over the months ahead.”
Supportive factors include:
- Rising central bank demand
- Increased flows into gold-backed ETFs
- Ongoing macro uncertainty
Other Precious Metals Also Gain
- Silver rose 0.4% to $31.31/oz
- Platinum climbed 0.7% to $944.35/oz
- Palladium surged 1.9% to $925.43/oz
As global financial stress intensifies, investors are seeking safety in gold. With central banks possibly shifting toward rate cuts and continued geopolitical instability, gold’s momentum looks set to continue — possibly breaking into new territory beyond $3,400/oz in the near term.
