Gold prices soared past the $3,200 per ounce mark for the first time on Friday, driven by a weakening U.S. dollar and growing investor demand for safe-haven assets amid a worsening trade war.
As of 0350 GMT, spot gold had jumped 1.4% to $3,217.78, having earlier touched a record high of $3,219.84. The metal has gained nearly 6% this week alone. U.S. gold futures also surged, rising 1.9% to $3,237.50.
Analysts attributed the rally to a sharp drop in the dollar, which slipped almost 1% against major currencies, making gold more affordable for international buyers.
Tensions between the U.S. and China have escalated, with President Trump hiking tariffs on Chinese imports to 145% and pausing tariffs for other nations, rattling markets and pushing investors toward gold.
China has responded with its own tariff hikes, sparking fears of even higher duties and deepening trade uncertainty.
Kyle Rodda from Capital.com noted that the next psychological milestone for gold is $3,500, though it may face volatility along the way.
In addition to trade tensions, strong central bank buying, expected interest rate cuts by the Federal Reserve, geopolitical risks, and rising inflows into gold ETFs have all contributed to gold’s stellar performance this year.
Data also showed U.S. consumer prices unexpectedly fell in March, but inflation risks remain. Markets are now pricing in a full percentage point cut from the Fed by the end of 2025, with the first move anticipated in June.
Among other precious metals, silver rose 0.3% to $31.29 an ounce, platinum edged down 0.1% to $936.85, and palladium gained 0.8% to $916.18.
