Gold surged to an all-time high above $3,200 per ounce as escalating global trade tensions and economic uncertainty fueled a rush toward the precious metal. Investors sought refuge in bullion amid fears of a prolonged tariff war and potential recession.
Gold’s Record-Breaking Rally
- Spot gold climbed 1.4% in early Asian trading, reaching $3,219.48—surpassing its previous peak set just a day earlier.
- The metal has gained over 6% this week, marking one of its strongest performances in months.
- Silver dipped slightly, while platinum and palladium saw modest gains.
Why Is Gold Rising?
1. Trade War Uncertainty
Investor anxiety spiked after President Donald Trump’s shifting tariff policies triggered volatility in stocks, bonds, and the dollar. Despite a 90-day pause on new tariffs, concerns linger over US-China trade relations, with existing duties on Chinese goods now at 145%.
“Gold is the best place to be right now,” said Liu Yuxuan, a precious metals analyst at Guotai Jun’an Futures Co. “The trade war has eroded trust in the dollar, boosting demand for alternative safe havens.”
2. Fed Rate Cut Expectations
Recent cooling US inflation data reinforced bets that the Federal Reserve may cut interest rates three times this year, with some traders even pricing in a fourth cut. Since gold doesn’t yield interest, lower rates make it more attractive.
3. Central Bank Buying
Strong demand from central banks has further supported gold’s rally, with many institutions diversifying reserves away from the dollar.
Market Outlook: Will Gold Keep Rising?
- Short-term: Volatility in trade negotiations could push gold even higher.
- Long-term: If the Fed follows through with rate cuts, bullion may sustain its upward trend.
Key Takeaways for Investors
✅ Gold remains a top safe-haven asset amid economic turbulence.
✅ Trade war developments and Fed policy will dictate future price movements.
✅ Central bank activity continues to bolster demand.
Stay updated on gold prices and market trends as trade tensions evolve.
