A flight to safety has turned gold into the breakout star of the week. The precious metal has surged past the $3,100 mark to set a new record and shows no signs of slowing. According to Reuters, gold hit an all-time high as US President Donald Trump's latest wave of tariffs heightened fears of a deeper global trade war, sparking a rush into safe-haven assets.
As of now, spot gold has risen by 0.36% to $3,067 per ounce. Last week, the yellow metal reached a record high of $3,086, up 2% over the week. It is now on track for a fourth straight weekly gain, an impressive run by any measure.
June gold futures added 0.59% to settle just above $3,109, crossing the $3,100 threshold for the first time in history. The new peak now stands at $3,124 per ounce.
"Gold has the wind at its back at the moment. US trade policy, US fiscal policy, geopolitics, and a growth slowdown — everything is blowing in gold's direction," Kyle Rodda, a financial markets analyst, said.
Uncertainty over tariffs, prospects of interest rate cuts, geopolitical flare-ups, and continued central bank buying have all pushed gold firmly above $3,000. Moreover, analysts say this could be just the beginning.
Trump's retaliatory tariffs set to take effect on April 2 could fuel inflation, hamper economic growth, and exacerbate global trade tensions. Despite these risks, analysts at BMI remain bullish on gold, citing a backdrop of uncertainty around US political uncertainty, trade frictions, global military conflicts, inflation fears, and broader macroeconomic instability.
Other precious metals also reacted to market developments. Silver traded at $34.41 per ounce, platinum slipped by 0.1% to $985.34, while palladium gained 0.5% to $980.14. Analysts expect all three to end the week on a positive note.
