Gold Hits Another All-Time High!
Gold prices are soaring, breaking past $3,100 an ounce according to Reuters, setting the stage for their best quarter since 1986. The rally continued on Monday as uncertainty surrounding upcoming tariffs spurred investors to seek the safety of bullion. By 1:44 p.m, spot gold had jumped 1% to $3,116.94 per ounce, after hitting a record high of $3,128.06 earlier in the day. U.S. gold futures followed suit, climbing 1.2% to close at $3,150.30.
Why Has Gold Jumped Up In Value?
"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."
Investors are on edge as U.S. President Donald Trump prepares to announce reciprocal tariffs on April 2, with automobile tariffs set to follow on April 3. Additionally, Trump warned on Sunday that he might slap secondary tariffs of 25%-50% on buyers of Russian oil, further fueling market anxiety. All this economic turbulence has worked in gold’s favor, pushing its price up nearly 18% this year after an impressive 27% surge in 2024. A mix of favorable monetary policies, strong central bank buying, and increased demand for gold-based ETFs has helped sustain the metal's bullish run.
From a technical perspective, gold's Relative Strength Index (RSI) sits above 77, suggesting an overbought market. Yet, analysts argue that momentum has continued to defy traditional price logic. With trade-war fears escalating, major Wall Street banks have raised their gold price forecasts. Goldman Sachs even predicts the metal could smash through $4,500 within the next 12 months under extreme market conditions.
RELATED: Gold Price Soars to $3,000 Amid Rising Trade Tensions.
"There are signs of strong Chinese buying activity that are flowing through ... We expect the continued uncertainty with respect to Trump's trade policy to fuel macro funds to purchase more gold," said Daniel Ghali, commodity strategist at TD Securities.
Meanwhile, silver dipped slightly by 0.6% to $33.90 an ounce, platinum ticked up 0.5% to $996.20, and palladium climbed 1.2% to $982.94. All three metals remain on track for monthly gains. However, silver has struggled to ride gold's wave of success. "Silver hasn't been able to benefit from the rise in gold, it really reflects idiosyncratic strength in the gold price as opposed to weakness in the silver price," Ghali explained.
Why Is Gold So Popular?
Gold has always been seen as a safe bet for many reasons, it's more immune to the affects of inflation unlike other paper currencies and it has proven to hold it's value over time, the same can't be said for the likes of Crypto and Stocks. It's also one of the original symbols of wealth, hence it's use in all manner of expensive things such as jewelry, medicine and electronics. Gold is also a finite resource which means that unlike paper currencies that can be printed, there is only so much gold to go around. Simply put, gold is timeless, tangible, and trusted.
In conclusion, gold has once again proven why it’s the ultimate safe-haven asset. Through economic turmoil, trade wars, and market uncertainty, it remains a beacon of stability. Investors might dabble in stocks, bonds, or even crypto, but when the world shakes, they always come running back to gold. History has shown time and again that gold isn’t just a commodity—it’s a symbol of security, wealth, and resilience. No matter what the future holds, one thing is certain: gold will always be king.
