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.

• Gold’s haven status has been underlined this week as it approaches $3240 (~Rs 92400). President Donald Trump’s flip-flopping message on his tariff plan sparks frenzied selloffs for US stocks, Treasuries, and the currency, as worries of a global recession grip Wall Street. 
• Even after his 90-day tariff freeze on higher levies that struck dozens of trade partners, charges on all Chinese imports have risen to at least 145%, with Beijing threatening to retaliate with 84% tariffs.
• The Dollar Index has fallen below 100 as central banks around the world sell US bonds and increasingly buy gold.
• Tensions between the two countries have reignited fears of a US recession on the way. On Thursday, statistics indicated that underlying US inflation fell broadly in March, with traders now pricing in expectations for three interest-rate cuts in the remainder of the year, with the possibility of a fourth.

Technical Triggers      

Randi Molofsky, JCK’s jewelry director and founder of For Future Reference, outlines five emerging jewelry trends shaping the industry in 2024:

1. Gold Alternatives & Modularity
   Soaring gold prices are prompting designers to explore two-tone metals and non-gold materials like beads, leather, and cords. There’s a shift toward modular jewelry—especially pendants sold separately—allowing consumers to mix and match with their preferred chains.
2. The Rise of Red
   Red gemstones, including rubies, carnelian, and malaya garnet, are gaining popularity—both in contemporary and vintage jewelry. Inspired in part by interior design’s “pop of red” trend, these vibrant stones are making bold statements in designer pieces.
3. Symbolism & Texture
   Cosmic motifs, especially zodiac-themed designs, are everywhere. Additionally, rope and woven textures are trending, with pieces that mimic handwoven or textile-inspired aesthetics—adding artisanal appeal.
4. Gem-Focused Cocktail Rings
   Oversized rings featuring standout gemstones are in vogue, with minimal emphasis on the setting. Pastel shades, bicolor tourmalines, and lighter-hued stones are favored for both their beauty and cost-effectiveness.
5. Brooches Make a Comeback
   Once red carpet staples, brooches are finding new life in daily wear. Stylists and consumers alike are embracing brooches worn creatively—on hair, belts, or accessories—making them versatile statement pieces.