Gold has set a new record by crossing a milestone level of $3,300 for the first time in history. The gold price has jumped 40% over the last 12 months. On April 16, gold touched an intraday high of $3,318. The closing price today will determine if gold has sustained above $3,300.
The continued uncertainty around US trade policies, along with weakness in the US Dollar, continues to support safe-haven demand.
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On Tuesday, President Trump called for an investigation into potential tariffs on all critical mineral imports—a move that signals a firmer stance on trade and could influence relations with key suppliers, including China.
This investigation has increased US-China trade tensions, leading to renewed interest in gold. The most recent indications from Washington indicate a harder trade posture, which will boost demand for safe-haven assets like gold and silver, even though recent tariff exclusions revealed some flexibility.
“Gold prices have surged to an all-time high today, fueled by a lower dollar, trade war tensions, and concerns about global economic growth as a result of US President Donald Trump’s tariff plans, which prompted safe-haven inflows,” says Dr. Renisha Chainani, Head – Research at Augmont.
China now faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions.
In response to the tariff hike, China’s foreign ministry emphasized that it wishes no confrontation but will not keep silent in the face of US pressure.
The US-China trade is creating an uncertain economic environment, leading investors to liquidate other safer assets such as bonds and equities. At a time when investors no longer consider US Treasuries as safe, gold is in increased demand, pushing the price up.
Gold’s positive momentum is also on the back of regular gold buying by central banks and consistent inflows into gold-backed ETFs.
With the US dollar under pressure and the US economy looking to go into a recession, gold is likely to continue its bull run. The US Fed rate cut expected in the latter half of 2025 is expected to further boost gold prices.
The gold price today in India is Rs 95,040 and is steadily moving towards the Rs 1 lakh mark.
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