Gold prices surged to an all-time high on Monday, exceeding $3,100 per ounce, as investors sought refuge amid escalating tariff concerns that could drive inflation and slow economic growth. The precious metal is now on track for its best quarterly performance since 1986.
By midday, spot gold had climbed 1% to $3,114.77 per ounce, following a record high of $3,128.06 earlier in the day. US gold futures also gained 1%, reaching $3,147.60.
David Meger, director of metals trading at High Ridge Futures, explained, “Ongoing uncertainty surrounding tariffs has unsettled equity markets, pushing more investors towards safe-haven assets like gold.”
While some technical factors may prompt profit-taking, Meger added that the bullish trend in the gold market remains strong, supported by underlying fundamentals.
The rise in gold prices coincides with expectations that US President Donald Trump will announce new reciprocal tariffs on April 2, with automotive tariffs to follow a day later. Trump also hinted at secondary tariffs of 25 to 50 per cent on buyers of Russian oil if Moscow hinders his efforts to end the war in Ukraine.
Gold has already risen around 18 per cent this year, following a 27 per cent jump in 2024. The surge has been driven by a combination of favourable monetary policies, significant central bank buying, and robust demand for exchange-traded funds.
Despite technical indicators showing that gold is in overbought territory, with its Relative Strength Index above 77, analysts believe the metal’s momentum continues to defy conventional market expectations.
Major financial institutions have adjusted their forecasts, with Goldman Sachs predicting gold could surpass $4,500 within the next year, particularly if trade tensions persist and central banks maintain their strong demand.
“We’re seeing signs of increased buying activity from China,” noted Daniel Ghali, commodity strategist at TD Securities. “The uncertainty around Trump’s trade policies is likely to encourage further purchases of gold by macro funds.”
Elsewhere in the precious metals market, silver slipped 0.9 per cent to $33.81 an ounce, while platinum rose 0.5 per cent to $988.05, and palladium gained 0.8 per cent to $979.70. All three metals are poised for monthly gains.
Ghali remarked that silver’s performance reflects the unique strength of gold rather than any significant weakness in silver.
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