Safe-haven gold surpassed the key US$3,200 mark for the first time on Friday (Apr 11), spurred by a weaker dollar and economic concerns due to an intensifying trade war.
Spot gold jumped over 1 per cent to US$3,214.92 an ounce, as of 8.01am (4.01pm, Singapore time), after hitting a record high of US$3,219.84 earlier in the session. Bullion is up over 5 per cent so far this week.
US gold futures climbed nearly 2 per cent to US$3,233.80.
“Recession risks are mounting, bond yields are soaring, and the US dollar continues to weaken – all factors reinforcing gold’s role as a crisis hedge and inflation shield,” said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany.
US President Donald Trump suddenly paused his “reciprocal” tariffs on other countries hours after they came into effect earlier this week, but he ratcheted up duties on Chinese imports as punishment for Beijing’s initial move to retaliate.
The pause also did little to soothe business leaders’ worries about the fallout from Trump’s trade war and its chaotic implementation.
Global stocks fell and the dollar index sank to a decade low. A lower dollar makes greenback-priced bullion cheaper for overseas buyers.
Spot gold has continued its blazing rally from the last year, hitting multiple record highs and gaining nearly 21 per cent so far this year driven by uncertainties, central bank demand and increased flows into gold-backed exchange-traded funds.
“We believe gold has further to run–in the upside case, we target US$3,400 to US$3,500 per ounce over the months ahead,” said UBS analyst Giovanni Staunovo.
Data on Thursday showed US consumer prices unexpectedly fell in March. Focus was also on the US producer price data due at 12.30pm (8.30pm, Singapore time) for insights into the Federal Reserve’s monetary policy trajectory.
Traders now bet that the Fed will resume cutting rates in June and probably reduce by a full percentage point by the end of 2025.
Spot silver gained 0.4 per cent to US$31.31 an ounce, while platinum added 0.7 per cent to US$944.35. Palladium gained 1.9 per cent to US$925.43.
Source: Reuters