Gold prices surged to a fresh record high on Wednesday, breaching the $3,300 per ounce mark as escalating trade tensions between the United States and China prompted investors to flock to the precious metal as a safe-haven asset.
Spot gold rose nearly 2.7%, reaching $3,313.45 per ounce by 10:30 a.m. ET, after peaking at an all-time high of $3,318.80 earlier in the day. US gold futures also gained 2.7%, hitting $3,326.80 per ounce. Meanwhile, the US dollar continued to weaken, holding near a three-year low against other major currencies.
The rally in gold was fueled by US President Donald Trump’s recent announcement to launch a probe into potential tariffs on critical mineral imports, further escalating the trade dispute with China and other global trade partners. This move has heightened fears of a global economic slowdown, which is driving demand for gold.
Lukman Otunuga, senior research analyst at FXTM, noted that gold remains heavily supported by the dollar’s weakness, tariff uncertainty, and recession fears. “Beyond $3,300, it’s all about psychological levels for gold prices. Bulls may target $3,400, $3,500, and upwards. However, a bout of profit-taking or positive US-China trade developments could trigger a selloff,” he added.
Gold’s Continued Upward Trend Amid Trade Uncertainty
Gold has experienced a strong uptrend in recent months, crossing multiple key price thresholds as President Trump’s unpredictable tariff policies have shaken global markets. So far this year, the precious metal has risen 27%, making it one of the best-performing assets of 2025.
Evy Hambro, global head of thematic and sector investing at BlackRock, commented on the market’s resilience, saying, “The gold market is thriving in this period of uncertainty, but the foundations are very tangible and real.”
Positive Outlook for Gold as Demand Grows
Experts and major banks remain bullish on gold’s prospects for the coming quarters. Demand for gold-backed exchange-traded funds (ETFs) has surged, with 226.5 tonnes worth $21.1 billion being added in the first quarter of 2025, marking the largest inflow in three years. Additionally, central banks have continued to accumulate gold, with China adding to its reserves for the fifth consecutive month in March.
Goldman Sachs has raised its gold price forecast three times this year, projecting the metal could reach $4,000 an ounce by mid-2026. Rick Kanda, managing director at The Gold Bullion Company, also believes a price of $4,000 is “absolutely possible,” citing ongoing economic pressures. “If such pressures continue as forecasted, gold-backed stability will be adopted globally,” Kanda said.
In a recent Bank of America global fund manager survey, 42% of respondents predicted that gold would be the best-performing asset class in 2025, up from 23% in March, reflecting growing optimism in the precious metal’s future.
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