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US President Donald Trump’s tariff plans have heightened market uncertainty, fueling the bullion rally.
Spot gold climbed 0.6% to $3,103.63 an ounce as of 02:55 GMT. Earlier, it touched a record $3,107.26 per ounce.
Gold has gained over 8% in March and surged 18% in Q1 2025.
In India, gold prices are also seeing upward trend.
On March 31, 24-carat gold was priced at ₹89,330 per 10 grams, while 22-carat gold stood at ₹81,886 per 10 grams, according to the Indian Bullion Association (IBA).
Key drivers of gold’s rally
Trade war fears: Trump is expected to announce reciprocal tariffs on April 2. Auto tariffs will follow on April 3. The uncertainty has pushed investors towards gold.
Russia sanctions:
On Sunday (March 30), Trump threatened secondary tariffs of 25% to 50% on buyers of Russian oil if Moscow continues to block his Ukraine peace efforts. This has further rattled markets.
Weaker dollar: The dollar index eased 0.2%, making gold more affordable for buyers using other currencies.
Inflation concerns: San Francisco Fed President Mary Daly’s remarks on Friday (March 28) hinted at a possible delay in interest rate cuts, reinforcing gold’s appeal.
Market outlook
Tim Waterer, Chief Market Analyst at KCM Trade, said, “Market anxiety has surged ahead of the tariff announcements, boosting gold demand as a defensive asset.” However, he warned that if the tariffs are less severe than feared, gold could see some profit-taking.
Major banks have revised their gold price forecasts upward for 2025, expecting further gains if geopolitical risks persist.
Should you invest in gold now?
Gold remains a strong hedge against inflation and global uncertainty. However, investors should be cautious of near-term volatility. If tensions ease, prices may retreat.
For long-term investors, gold can offer stability, but those looking for short-term gains should watch for corrections, experts say.
–With Reuters inputs
