Gold Prices Hit Fresh Record High As Investors Seek Safe Haven Amidst Tariff Tensions
A softening US dollar added to the momentum, increasing the precious metal’s appeal among international investors. The dollar index also touched a three-year low.
Gold prices surged to an all-time high on Monday, fueled by growing anxiety over the global economic outlook as US-China trade tensions escalate. A softening US dollar added to the momentum, increasing the precious metal’s appeal among international investors.
Spot gold climbed 1.7 per cent to $3,383.87 an ounce around 8:30 AM, reaching a new peak of $3,384 earlier in the day. In parallel, US gold futures rose 2 per cent to $3,396.10, reported Reuters.
The dollar index touched a three-year low, a move that generally supports gold by making it cheaper for holders of other currencies.
“Fundamentally, markets are pricing in heightened geopolitical risks, driven by US tariff tensions and stagflation concerns, while resilient central bank demand offers an added tailwind for prices as well,” said IG market strategist Yeap Jun Rong.
Trade Conflicts, Geopolitical Pressures Drive Demand For Safe Havens
Tensions between Washington and Beijing have taken center stage after US President Donald Trump introduced “reciprocal tariffs” on multiple nations starting April 2. While some countries have temporarily received exemptions, the administration has intensified its trade offensive against China. Adding to the friction, China issued a warning on Monday against countries negotiating broader economic agreements with the US that might compromise its own position. Reports suggested that Trump is pursuing such deals in exchange for tariff relief.
Meanwhile, President Trump also targeted the Federal Reserve, unleashing criticism against Chair Jerome Powell last Thursday. Reports indicated that the White House is exploring whether Powell can be dismissed from his role.
On another front, hostilities between Russia and Ukraine overshadowed efforts to maintain a one-day Easter truce. Both nations accused each other of thousands of violations. The Kremlin confirmed that no orders had been issued to prolong the ceasefire, casting further doubt over stability in the region.
With investors turning cautious amid these overlapping global challenges, gold continues to serve as a safe haven. “The next potential milestone for gold could be around the $3,500 level, though positioning may appear crowded in the near term and technical indicators suggest near-term overbought conditions,” Rong noted.
Broader Precious Metals Market Sees Mixed Action
Other metals experienced more modest shifts. Spot silver edged up by 0.3 per cent to $32.66 per ounce, while platinum also gained 0.3 per cent, reaching $969.68. In contrast, palladium slipped by 0.3 per cent to $959.43.
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