Gold prices have surged in international markets, breaking past the $3,100 per ounce threshold and marking a fresh all-time high.
The precious metal continues to attract investors seeking safe-haven assets amid rising geopolitical and economic uncertainty.
The week commenced with gold reaching a new record high, driven by escalating concerns over global trade tensions. Market sentiment remains cautious ahead of former U.S. President Donald Trump’s latest move to impose tariffs, which has intensified fears of a prolonged trade war. In early Monday trading, gold prices climbed as much as 1.4%, reaching $3,127.92 per ounce. This rise surpassed the previous peak set on Friday, when gold recorded its fourth consecutive weekly gain. The growing demand for gold as a safe-haven asset is fueling its upward trajectory as risk-averse investors turn to bullion to hedge against financial instability.
Gold’s rally past the psychological barrier of $3,100 per ounce is attributed to the combination of global economic uncertainty and geopolitical tensions. Trump’s recent proclamation enforcing a 25% tariff on auto imports has added to concerns over the state of international trade. Additionally, traders are bracing for the implementation of reciprocal tariffs by the White House, expected to take effect on Wednesday. These protectionist measures have further heightened anxieties, pushing gold prices higher as investors seek stability in a volatile market environment.
Looking ahead, the imposition of U.S. import tariffs on April 2, alongside the broader implications of a potential trade war, is likely to keep gold demand strong. The fragile geopolitical landscape continues to contribute to the flight toward safe assets, further bolstering gold prices. The precious metal remains in a steep uptrend, having surged from the $2,000 per ounce range. Gold prices are now on track for their most significant monthly gain in 14 years, with March witnessing an impressive rally. Furthermore, the quarterly performance is set to be the strongest in nearly four decades, with gains exceeding 18%.
Despite overbought daily indicators, bullish momentum remains robust. While a short-term pullback could occur, any dips in gold prices are expected to be shallow due to sustained strong demand. The $3,100 level, now a pivotal support, is followed by the previous peak at $3,057 and the rising 10-day moving average at $3,045, providing key technical benchmarks. The critical support zone remains at $3,000, reinforcing gold’s strong bullish outlook.