Gold surged to an all-time high on Monday, fueled by growing concerns over U.S. President Donald Trump’s aggressive tariff policies, which have heightened fears of a global economic slowdown.
Gold’s Historic Rally
Spot gold jumped 1.1% to $3,116.82 per ounce as of 06:38 GMT, after briefly touching a record $3,128.06. U.S. gold futures climbed 1.1% to $3,148.00.
So far this quarter, gold has gained over 18%, marking its biggest quarterly increase since September 1986.
Key Drivers Behind Gold’s Surge
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Trade War Concerns: Markets remain on edge as Trump is set to announce reciprocal tariffs on April 2, with auto tariffs following on April 3.
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Safe-Haven Demand: Investors are flocking to gold amid rising geopolitical tensions, particularly Trump’s latest threats of secondary tariffs on Russian oil buyers.
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Rate Cut Speculation: The Federal Reserve’s potential easing has made gold more attractive relative to interest-bearing assets.
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Central Bank Buying & ETF Demand: Increased purchases by global central banks and institutional investors have further supported gold’s rally.
Market Outlook: Can Gold Hold Its Gains?
The Commodities Prices API can provide real-time tracking of gold and other key commodities, helping investors navigate market shifts.
KCM Trade’s Chief Market Analyst, Tim Waterer, noted:
“If the tariff announcements this week are not as severe as feared, gold prices could start to backtrack as profit-taking from record highs kicks in.”
For now, gold remains the go-to hedge against uncertainty, but market sentiment could shift quickly based on upcoming geopolitical and economic developments.
