Gold prices have surged due to the recent trade turmoil in the US, with investors flocking to the metal as a safe haven. The price of gold has reached $3,500 per ounce, with J.P. Morgan predicting that it will average $3,675 per ounce by the fourth quarter of 2025 and reach $4,000 by the second quarter of 2026.
The decline in US Treasuries and the dollar index has led to a sell-off in these assets, making gold more attractive. The traditional inverse relationship between Treasury yields and gold prices seems to have broken down, with investors seeking the metal’s inflation-hedging qualities.
Analysts attribute the surge in gold prices to declining faith in the US economy and dollar, as well as concerns over tariffs and trade policy. Emerging market central banks are also turning to gold as part of their diversification efforts, further fueling the demand for the metal.
While some experts predict a material shift away from the dollar, others argue that it remains too difficult to replace the US Treasury’s safe haven status due to its liquidity and global appeal. The replacement is not expected anytime soon, with the world shifting towards a more multi-polar landscape.
Source: https://www.cnbc.com/2025/04/24/gold-rallies-as-investors-re-evaluate-us-treasurys-and-dollar.html