Gold prices surged to a new all-time high, surpassing $3,200 per ounce, driven by mounting concerns over the global economic impact of trade tariffs. On Friday morning in Asian trading, gold rose by as much as 1.4%, reaching $3,219.48—setting a new record after surpassing its previous peak set just the day before. This marks a continuation of a strong upward trend for the precious metal, which has gained more than 3% for the second consecutive day.
The surge in gold prices underscores its role as a safe-haven asset amidst growing economic volatility. The uncertainty surrounding U.S. President Donald Trump’s shifting stance on tariffs has led to widespread market instability. A series of conflicting messages on tariff policy has triggered heavy sell-offs in U.S. stocks, bonds, and the dollar, with Wall Street grappling with fears of a global recession. Even after President Trump announced a 90-day pause on higher tariffs affecting various trading partners, including China, the impact of these tensions remains felt, as duties on Chinese imports have now risen to at least 145%.
“Gold is the best place to be in the market now,” said Liu Yuxuan, a Shanghai-based precious metals researcher at Guotai Jun’an Futures Co. Liu emphasized that the deepening trade dispute has eroded confidence in the U.S. dollar, driving investors towards alternative safe-haven assets like gold.
Amidst skepticism about the success of trade talks before the next 90-day deadline, investors remain cautious. Despite the White House’s assurances, with Economic Council Director Kevin Hassett stating that the U.S. is “well advanced” in discussions with its economic partners, concerns persist about whether an agreement can be reached in time.
Gold’s strong performance this year is further supported by increasing central bank purchases and expectations of further monetary easing from the Federal Reserve. A recent report showing a cooling of U.S. inflation in March has led traders to price in the possibility of three interest rate cuts by the Fed over the course of the year, with a chance of a fourth. Lower interest rates typically benefit gold, as it does not generate interest income.
Gold’s rise reflects investor sentiment that economic uncertainties, particularly around trade policies, will continue to support demand for the precious metal as a store of value.
Related topics:
Gold Futures Vs Gold ETFs: What Is The Difference?
