Gold prices surged to an all-time high on Friday, breaching the critical $3,200 per ounce level for the first time as investors flocked to safe-haven assets amid a tumbling US dollar and mounting global trade tensions.
Spot gold climbed 1.3% to $3,216.48/oz by 02:30 GMT, after touching a record peak of $3,219.73 earlier in the session. The metal is now up over 5% for the week, marking one of its strongest weekly performances in recent months. Meanwhile, US gold futures advanced 1.9% to $3,236.00.
“The rapid weakening of the US dollar seems to be the main driver of gold’s rebound,” said Ilya Spivak, Head of Global Macro at Tastylive. “It reflects a broader shift away from USD-based assets amid growing uncertainty around tariff policies.”
The US dollar index (.DXY) slipped, making gold more affordable for international buyers and further boosting demand. Stock markets also declined sharply following US President Donald Trump’s announcement of increased tariffs on Chinese imports—now up to 145%. However, a 90-day pause was granted on previously planned tariffs affecting several other countries.
In retaliation, China raised its own tariffs on US goods, fuelling concerns that Beijing might soon push duties beyond the current 84% threshold—escalating the economic standoff even further.
$3,500 in Sight?
“$3,500 is the next psychological target,” noted Kyle Rodda, financial market analyst at Capital.com. “But it’s unlikely to be a straight path—we’ll see volatility along the way.”
In addition to trade tensions and currency weakness, gold’s rally is also being driven by:
- Rising central bank purchases
- Geopolitical instability in the Middle East and Europe
- Expectations of US interest rate cuts
- Strong inflows into gold-backed ETFs
US inflation data released this week showed consumer prices unexpectedly fell in March, but economists warn that upside risks remain. Traders are now pricing in Federal Reserve rate cuts beginning in June, with a potential full percentage point reduction by the end of 2025.
Other precious metals had a mixed day:
- Silver dipped 0.2% to $31.13/oz
- Platinum declined 0.4% to $934.20
- Palladium rose 0.7% to $914.70
With global uncertainty continuing to mount, gold’s rally shows no signs of slowing—making the metal a standout performer in an otherwise volatile economic landscape.
