Gold price scales $3,400 as global trade, geopolitical risks intensify
Gold surged above $3,400 to a new record on Monday, as a fresh bout of US dollar weakness and uncertainty over the US-China trade tensions spurred demand for the safe-haven metal.Spot gold rose 2.7% to $3,418.89 per ounce by 11:00 a.m. ET, having set an all-time peak of $3,429.83 earlier. US gold futures traded at $3423.30 per ounce, for a near 3% gain.Meanwhile, the dollar continued to tumble as investor confidence in the US economy took another hit over President Donald Trump’s comments about Federal Reserve chairman Jerome Powell.“Firing Powell not only undermines the principle of central bank independence, but risks politicizing US monetary policy in a way that markets will find unsettling,” said Christopher Wong, strategist at Oversea-Chinese Banking Corp., in a Bloomberg note.“If the Fed’s credibility is called into question, that could erode confidence in the dollar and accelerate flows into havens, including gold,” he added.Analysts see gold at $4,000 as faith in the US dollar tumblesGold has now gained more than $700 or 27% since the start of 2025, scaling multiple records along the way, as rising uncertainty over the global trade war drove more and more investors toward bullion as a hedge.Holdings in gold-backed exchange-traded funds have risen for the past 12 weeks, the longest run since 2022. Central banks have also been adding the metal to their reserves, underpinning robust worldwide demand.On the trade front, China warned nations against striking deals with the US at the expense of Beijing’s interests. Data due this week — including revised forecasts from the International Monetary Fund — may reinforce concerns about a global slowdown.Last week, the yellow metal surpassed $3,300 an ounce as the Sino-US trade conflict ramped up, and the strong momentum has now pushed it up by another $100 in just a few days.Banks have become progressively more positive about gold’s prospects as this year’s rally has gone from strength to strength. Among them, Goldman Sachs Group forecast the metal could hit $4,000 midway through next year.(With files from Bloomberg)Read More: Is Basel III setting up a new gold-backed monetary system?Weiter zum vollständigen Artikel bei Mining.com
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