Gold prices soared past the $3,200 mark on Friday as investors fled to safe-haven assets amid escalating US-China trade tensions and recession fears. Spot gold rose nearly 2% to $3,235.89 an ounce, while US gold futures jumped 2.1% to settle at $3244.6.
The dollar’s decline against its peers made bullion cheaper for overseas buyers, fueling the rally. Central bank buying, Fed rate cut expectations, and geopolitical uncertainties have all contributed to gold’s surge this year.
US producer prices unexpectedly fell 0.4% in March, but tariffs are expected to drive inflation higher. Traders now anticipate the Fed will resume cutting rates in June, with a total of 90 basis points worth of cuts by the end of 2025.
Gold remains a popular hedge against global uncertainties and inflation, particularly in low-interest-rate environments. However, certain developments could cap its rise, including improved trade relations or a stronger economic backdrop.
Source: https://finance.yahoo.com/news/gold-bolts-past-3-200-030353838.html