Gold Hits Record $3,128 as Tariff Uncertainty Fuels Demand
Market Analysis
Gold prices extended their stellar run on Monday, topping $3,100 per ounce to hit another record high, as uncertainty around tariffs that would stoke inflation and hinder economic growth lifted safe-haven demand and kept bullion on course for its strongest quarter since 1986.
Spot Gold and Futures Prices
Spot gold was up 0.7% to $3,103.99 per ounce by 09:47 a.m. ET (1347 GMT), having hit a record $3,128.06 earlier. U.S. gold futures were up 0.7% at $3,136.10.
Industry Insights
"The ongoing uncertainty regarding tariffs has affected equity markets and brought another round of safe haven buying into the gold market," said David Meger, director of metals trading at High Ridge Futures. "There are certain technical areas of resistance along the way that could cause a little profit taking or pullback. But the ongoing bullish trend remains in place. The fundamental underpinnings remain in place."
Global Economic Uncertainty
U.S. President Donald Trump is expected to announce reciprocal tariffs on April 2, while automobile tariffs will take effect on April 3. Trump said on Sunday he would impose secondary tariffs of 25%-50% on buyers of Russian oil if he feels Moscow is blocking his efforts to end the war in Ukraine.
Year-to-Date Performance
Bullion has gained around 18% so far this year, after rising more than 27% in 2024, supported by a favourable monetary policy backdrop, robust central bank buying and demand for exchange-traded funds, among other factors.
Technical Analysis
On the technical front, gold’s Relative Strength Index stands above 77, indicating the market is overbought, but analysts said the momentum has defied any standard logic of where prices are positioned.
Outlook from Wall Street Banks
Wall Street big banks have raised their outlook on gold prices citing trade-war tensions and strong central bank demand, with Goldman Sachs expecting gold to surpass $4,500 within the next 12 months under extreme market conditions.
Silver, Platinum, and Palladium
Spot silver slipped 1.7% to $33.53 an ounce, platinum was down 0.6% to $977.90 and palladium gained 0.2% to $973.68. All three metals were headed for monthly gains.
Conclusion
The ongoing uncertainty surrounding tariffs has driven gold prices to a record high, as investors seek safe-haven assets. The strong demand for gold and other precious metals is expected to continue, driven by the uncertain global economic environment.
Frequently Asked Questions
Q: What is driving the demand for gold?
A: The ongoing uncertainty surrounding tariffs is driving demand for gold, as investors seek safe-haven assets.
Q: What is the current price of gold?
A: The current price of gold is $3,103.99 per ounce.
Q: What is the outlook for gold prices?
A: Wall Street big banks have raised their outlook on gold prices, citing trade-war tensions and strong central bank demand.