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Gold prices soar past the $3,200 mark on escalating trade tensions, weakening $

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On Friday, April 11, 2025, gold prices soared past the $3,200 mark, reaching an unprecedented high of $3,245.28 per ounce. This significant surge is attributed to escalating trade tensions between the United States and China, a weakening U.S. dollar, and growing concerns over global economic stability.

The trade conflict between the U.S. and China intensified as President Donald Trump imposed a 145% tariff on Chinese imports, excluding China from a 90-day tariff pause. In retaliation, China levied a 125% tariff on U.S. goods. These aggressive measures have heightened market volatility and raised fears of a potential recession, prompting investors to seek the safety of gold .

The uncertainty stemming from the trade war has led to a substantial shift in investor behavior. Gold-backed exchange-traded funds (ETFs) experienced significant inflows, adding 226.5 metric tons worth $21.1 billion in the first quarter of 2025—the largest since early 2022 . Additionally, central banks, notably the People’s Bank of China, have been increasing their gold reserves, further driving demand.

The U.S. dollar’s decline to a three-year low has made gold more attractive to investors holding other currencies . Concurrently, inflation expectations have risen, with consumer sentiment deteriorating and concerns about rising unemployment . These factors contribute to the appeal of gold as a hedge against inflation and economic instability.

The impact of the trade war extends beyond the U.S. and China. In China, the premium for gold on the Shanghai Gold Exchange increased to 1.1% above the London benchmark, up from 0.15% the previous week. Physical gold premiums in China rose sharply to $24–$54 per ounce, compared to $6–$13 the previous week . These shifts indicate a growing demand for gold as a protective asset amid economic uncertainty.

Analysts suggest that if current trends continue, gold prices could reach between $3,400 and $3,500 per ounce . The combination of trade tensions, currency fluctuations, and inflation concerns underscores the metal’s role as a safe-haven asset in times of economic turmoil.

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International News

Gold continues upward march;Bank of America forecasts  $5,000/oz for 2026

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Gold prices in India saw a modest rise on Wednesday today Oct 15, mirroring an uptick in international markets as renewed US-China trade tensions and expectations of further US interest rate cuts bolstered demand for safe-haven assets.24k gold traded at Rs.1,28,360/10gm after gaining ₹10 in early trade, while silver prices increased by Rs.100 to Rs.1,89,100 per kilogram.

Gold prices surged to a record high of $4,179.48 per ounce on October 14, 2025.  Investors flocked to safe-haven metals amid trade tensions and Fed rate-cut expectations. U.S. December gold futures jumped 57% year-to-date.  Bank of America raised its 2026 gold forecast to $5,000 per ounce, warning of possible near-term corrections.

Gold prices soared to an unprecedented $4,179.48 per ounce on October 14, 2025, marking a historic milestone for the yellow metal. The rally comes as investors worldwide seek safety in hard assets amid a turbulent global economic backdrop marked by escalating trade tensions, slowing growth, and expectations of further interest rate cuts by the U.S. Federal Reserve.

The sharp surge in bullion prices has been driven by a combination of macroeconomic uncertainty and aggressive monetary easing. As inflation pressures remain sticky and central banks pivot toward dovish policies, gold has reasserted its role as a hedge against both currency debasement and market volatility.

In futures trading, U.S. December gold contracts have skyrocketed nearly 57% so far this year, underscoring the strength of investor demand across both institutional and retail segments. Analysts note that central bank buying—particularly from emerging markets—has added further momentum to the rally, with several countries diversifying reserves away from the U.S. dollar.

Reflecting this bullish sentiment, Bank of America has raised its 2026 gold price forecast to $5,000 per ounce, citing continued monetary easing, geopolitical instability, and robust central bank accumulation. However, the bank also cautioned that short-term corrections are likely, given the rapid pace of the recent run-up and potential bouts of profit-taking.

Overall, gold’s meteoric rise underscores a broader shift toward safe-haven assets, as investors navigate a world increasingly defined by economic fragmentation, shifting interest rate cycles, and persistent geopolitical risks.

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