Gold Surges Past $3,200 Amid Escalating Trade Tensions and Economic Uncertainty​

Gold prices have soared to unprecedented levels, surpassing $3,200 per ounce for the first time in history. This surge marks the third consecutive session of gains, driven by escalating trade tensions, a weakening U.S. dollar, and growing investor demand for safe-haven assets.​

Record-Breaking Rally

On April 11, 2025, spot gold reached a record high of $3,245.28 per ounce, reflecting a significant 23% increase since January. U.S. gold futures also climbed, trading at $3,237.50 per ounce. In India, gold prices hit ₹93,390 per 10 grams, setting new benchmarks in both global and domestic markets.​

Drivers Behind the Surge

Intensifying U.S.-China Trade War

The ongoing trade conflict between the U.S. and China has intensified, with the U.S. imposing 145% tariffs on Chinese imports and China retaliating with 125% tariffs on U.S. goods. These measures have disrupted global supply chains and heightened market volatility, prompting investors to seek the stability of gold.​

Weakening U.S. Dollar

The U.S. dollar has fallen to a three-year low, making gold more affordable for investors using other currencies. This depreciation has further fueled demand for gold as a hedge against currency risk.​

Central Bank Purchases

Central banks worldwide have increased their gold reserves, with China and Russia leading the trend. In the first quarter of 2025, central banks added significant amounts to their holdings, contributing to the upward pressure on gold prices.​

Inflation and Interest Rate Expectations

Cooling inflation data in the U.S. has led to expectations of multiple interest rate cuts by the Federal Reserve in 2025. Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, enhancing its appeal to investor.