Gold breaks $3,300 for first time in history as tariff war ramps up

Trade Arabia

16-04-2025

Gold has set a new record by crossing a milestone level of $3,300 for the first time in history. The gold price has jumped 40% over the last 12 months, said media reports.
Spot gold hit a record of $3,317.90 per ounce on Wednesday, resuming a rally based on U.S. President Donald Trump's tariff policies, robust central bank buying and prospects of interest rate cuts by the Federal Reserve, reported Reuters.
On April 16, gold touched an intraday high of $3,318 and with the continued uncertainty around US trade policies, along with weakness in the US Dollar, gold is set to create history.
Major banks and industry experts remain optimistic about gold's prospects over the coming quarters, as investors add to their holdings in gold-backed exchange-traded funds (ETFs) and central banks continue to accumulate bullion.
Washington's latest signals point to a more difficult trade relationship with China, which will increase demand for safe-haven assets like silver and gold.
Fueling gold's rally, US President Donald Trump on Tuesday ordered a probe into possible tariffs on all critical minerals imports, marking another escalation in his dispute with global trade partners and an attempt to pressure industry leader China.
"Gold remains heavily supported by a broadly weaker dollar, uncertainty around tariff announcements and fears about a global recession,' Lukman Otunuga, senior research analyst at FXTM, commented.
'Beyond $3,300, it's all about psychological levels for gold prices. Bulls may target $3,400, $3,500, and upwards. However, a bout of profit-taking or positive US-China trade developments could trigger a selloff,' stated Otunuga.
Gold has hit a series of record highs and crossed multiple key thresholds in recent months as US President Donald Trump and his unpredictable tariff policies wreaked havoc on the global markets. For the year, bullion has risen 27% — making it one of the top-performing assets so far, reported mining.com.
Meanwhile Bloomberg reported that gold briefly pared gains following a report that China is open to trade talks if the US names a point person to represent the country and shows respect by reining in disparaging remarks, according to a person familiar with the Chinese government's thinking.
The precious metal has climbed more than 26% this year and hit a series of record highs as the escalating trade war creates anxiety over a possible global recession and as investors struggle to take long-term positions due to the unpredictability of tariff announcements from Washington.
"I'd love to have a pound for every time someone said it's a record high in gold in the last few weeks," Evy Hambro, thematic and sector investing global head at Blackrock said on Bloomberg Television.
'The gold market is kind of thriving in this period of uncertainty, but the foundations are very tangible and real.'
Gold ETFs saw an inflow of 226.5 tonnes worth $21.1 billion in the first quarter of 2025, the largest in three years. Central bank purchases were robust in March, with China adding to its reserves for the fifth straight month.
"Gold prices reached a new all-time high today, solidifying their status as the preferred safe-haven asset in an increasingly complex global environment. Midweek trading saw the precious metal surge over 2.5%, firmly breaching the $3,300 per ounce psychological and technical barrier, with an intraday high of $3,317.90," stated Quasar Elizundia, an expert research strategist at Pepperstone.
"This remarkable rally occurs against a backdrop of persistent macroeconomic and geopolitical uncertainty. Gold's ascent is not an isolated event, but rather a continuation of a strong trend driven by a combination of key factors: ongoing trade tensions, the structural weakness of the U.S. dollar, and increasing strategic diversification by central banks," explained Elizundia.
He pointed out that the dollar's weakness, now trading near its lowest levels in three years, plays a pivotal role.
A weaker dollar makes gold cheaper for investors using other currencies and reduces the relative appeal of dollar-denominated assets. This dynamic is eroding the perception of the dollar as a primary safe haven, directly benefiting gold, he noted.