Gold extended its historic rally on Thursday, surging to yet another record high as investors flocked to the precious metal amid mounting global trade tensions and growing uncertainty around U.S. economic policy.
Spot gold rose 0.1% to $3,346.20 per ounce as of 0008 GMT, after earlier hitting a new all-time high of $3,357.40. U.S. gold futures also gained momentum, climbing 0.4% to $3,359.50.
The surge follows Wednesday’s breakthrough above the $3,300 level, underscoring strong safe-haven demand as geopolitical and economic risks intensify.
The latest trigger came after U.S. President Donald Trump ordered a probe into potential new tariffs on all critical minerals imports, expanding the administration’s trade crackdown beyond pharmaceuticals and semiconductor chips. In retaliation, China instructed its airlines to halt further deliveries of Boeing aircraft, while the U.S. government further restricted Nvidia’s H20 AI chip exports to China.
These developments deepened fears of a prolonged trade standoff between the world’s two largest economies, driving investors toward gold — traditionally seen as a hedge against inflation, geopolitical risk, and economic instability.
So far in 2025, gold has climbed more than 27%, buoyed by trade war anxieties, a weakening U.S. dollar, and expectations of interest rate cuts.
U.S. Federal Reserve Chair Jerome Powell on Wednesday signaled a cautious approach to monetary policy, stating that the Fed would need more data before making any moves on rates. However, Powell also warned that the Trump administration’s tariff policies could derail the central bank’s goals for inflation and employment.
Markets are now pricing in around 91 basis points worth of rate cuts by the end of 2025, further supporting the gold rally.
Meanwhile, the U.S. dollar edged lower, hovering near a three-year low reached last week, enhancing gold’s appeal to holders of other currencies.
In other precious metals:
Spot silver rose 0.1% to $32.78 an ounce
Platinum gained 0.2% to $969.05
Palladium slipped 0.7% to $964.75
Key Economic Data Ahead (GMT):
12:30 – U.S. Housing Starts (March)
12:30 – U.S. Initial Jobless Claims (Week ending April 12)
12:30 – U.S. Philadelphia Fed Business Index (April)
13:15 – European Central Bank policy decision
As investors await fresh macroeconomic signals, gold remains firmly in the spotlight as the preferred shield against an increasingly volatile global outlook.
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