Gold prices have surged to a record high of $3,245.28 per ounce, driven by intensifying US-China trade tensions and global economic uncertainty. Bullion has risen 23% so far in 2025, with investors seeking the metal as a refuge from market volatility.
The recent price surge is partly attributed to the drop in the dollar, which has traded near a three-year low, making bullion more attractive for other currency holders. Analysts point to geopolitical tensions, central bank demand, and increased flows into gold-backed exchange-traded funds (ETFs) as key drivers of the metal’s increase.
Gold ETFs saw the largest inflows since Q1 2022 in the last quarter, with a value of $21.1 billion. This trend is expected to continue, driven by US Federal Reserve rate cut expectations and increased uncertainty around White House policy.
Experts warn that further price increases are possible, with one strategist predicting an $800-per-ounce increase to surpass $4,000 per ounce. The recent surge in gold prices has been compared to the metal’s rapid rise from $1,000 to $2,000 per ounce over 14 years, highlighting its potential for significant gains in a volatile market.
Source: https://www.reuters.com/markets/commodities/us-china-tariff-war-steers-gold-through-3200-per-ounce-2025-04-11