Gold Prices Reach All-Time High Amid Economic Uncertainty

Gold prices soared to a new record high on Monday, driven by growing anxieties regarding the global economic outlook and the ongoing trade disputes between the United States and China. A weaker dollar further contributed to the precious metal’s upward trajectory.

Spot gold experienced a surge of 1.4%, reaching $3,373.70 per ounce as of 0432 GMT, after having touched a peak of $3,385.08 earlier in the session. Similarly, US gold futures saw a rise of 1.8%, settling at $3,386.50. The dollar index declined to a three-year low, making gold a more appealing investment for holders of other currencies.

According to Yeap Jun Rong, a market strategist at IG, “Markets are factoring in increased geopolitical risks, fueled by tariff tensions imposed by the US and worries about stagflation. Additionally, steady demand from central banks is providing extra support for prices.”

On April 2, former US President Donald Trump declared “reciprocal tariffs” on numerous nations. While his administration temporarily suspended levies for certain countries, the trade conflict with China has escalated.

China cautioned nations against entering into a broad economic agreement with the US that would be detrimental to China’s interests. This warning comes in response to reports that Trump sought such deals from countries seeking tariff reductions or exemptions.

Concurrently, Trump launched various attacks on Federal Reserve Chair Jerome Powell, with his team exploring potential options to remove Powell from his position.

On the geopolitical landscape, Russia and Ukraine have traded accusations of thousands of attacks violating the Easter ceasefire announced by President Vladimir Putin. The Kremlin stated that there were no plans to extend the pause in frontline combat. These factors are considered favorable for the safe-haven appeal of gold.

In Pakistan, gold prices have remained relatively stable.

However, gold’s relative strength index (RSI) is currently at 75, indicating that the metal is in overbought territory.

Rong noted that “The next target for gold could be around the $3,500 mark, but positioning might appear crowded in the short term, and technical indicators suggest overbought conditions in the near term.”

Spot silver increased by 0.4% to $32.71 per ounce, platinum rose by 0.3% to $969.65, while palladium decreased by 0.5% to $957.68.