Gold prices soared past the critical $3,200 mark for the first time on Friday, driven by a weakening US dollar and growing concerns over global economic stability as trade tensions escalate.
Spot gold rose more than 1% to $3,214.92 an ounce as of 0801 GMT, after hitting a record high of $3,219.84 earlier in the session. So far this week, bullion has gained over 5%, as per Reuters report.
US gold futures followed suit, jumping nearly 2% to $3,233.80.
"Recession risks are mounting, bond yields are soaring, and the US dollar continues to weaken – all factors reinforcing gold's role as a crisis hedge and inflation shield," said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany.
The latest surge comes amid renewed trade tensions, with US President Donald Trump escalating tariffs on Chinese imports even after abruptly pausing “reciprocal” tariffs on other countries. The move has done little to ease concerns among global business leaders who fear further economic fallout from the unpredictable trade war .
Global stock markets slipped, and the US dollar index dropped to a 10-year low, making dollar-denominated gold more affordable for international buyers and further boosting demand.
Gold’s remarkable rally, which began last year, continues to gain momentum. The metal is up nearly 21% year-to-date, buoyed by geopolitical uncertainty, strong central bank buying, and increased flows into gold-backed exchange-traded funds (ETFs).
"We believe gold has further to run—in the upside case, we target USD 3,400-3,500/oz over the months ahead," said UBS analyst Giovanni Staunovo.
On the economic front, US data released Thursday showed an unexpected dip in consumer prices for March. Investors are now turning their attention to the upcoming producer price index data due at 1230 GMT for clues about the Federal Reserve’s next policy moves.
Market expectations suggest the Fed could resume rate cuts as early as June, with a full percentage point reduction anticipated by the end of 2025.
Meanwhile, other precious metals also gained. Spot silver rose 0.4% to $31.31 per ounce, platinum climbed 0.7% to $944.35, and palladium advanced 1.9% to $925.43.
Spot gold rose more than 1% to $3,214.92 an ounce as of 0801 GMT, after hitting a record high of $3,219.84 earlier in the session. So far this week, bullion has gained over 5%, as per Reuters report.
US gold futures followed suit, jumping nearly 2% to $3,233.80.
"Recession risks are mounting, bond yields are soaring, and the US dollar continues to weaken – all factors reinforcing gold's role as a crisis hedge and inflation shield," said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany.
The latest surge comes amid renewed trade tensions, with US President Donald Trump escalating tariffs on Chinese imports even after abruptly pausing “reciprocal” tariffs on other countries. The move has done little to ease concerns among global business leaders who fear further economic fallout from the unpredictable trade war .
Global stock markets slipped, and the US dollar index dropped to a 10-year low, making dollar-denominated gold more affordable for international buyers and further boosting demand.
Gold’s remarkable rally, which began last year, continues to gain momentum. The metal is up nearly 21% year-to-date, buoyed by geopolitical uncertainty, strong central bank buying, and increased flows into gold-backed exchange-traded funds (ETFs).
"We believe gold has further to run—in the upside case, we target USD 3,400-3,500/oz over the months ahead," said UBS analyst Giovanni Staunovo.
On the economic front, US data released Thursday showed an unexpected dip in consumer prices for March. Investors are now turning their attention to the upcoming producer price index data due at 1230 GMT for clues about the Federal Reserve’s next policy moves.
Market expectations suggest the Fed could resume rate cuts as early as June, with a full percentage point reduction anticipated by the end of 2025.
Meanwhile, other precious metals also gained. Spot silver rose 0.4% to $31.31 per ounce, platinum climbed 0.7% to $944.35, and palladium advanced 1.9% to $925.43.
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