Gold prices surged to historic levels on April 16, surpassing the $3,300 mark for the first time ever, driven by growing economic uncertainty and heightened trade tensions between the United States and China. The precious metal recorded an intraday high of $3,318, marking a dramatic 40% rise over the past year.
This upward trajectory is largely attributed to investor concerns over escalating US trade policies and a weakening US Dollar, both of which have prompted a shift toward safe-haven assets like gold. Analysts are now closely watching to see if the metal can maintain its position above this critical threshold at today’s close.
The rally gained momentum following US President Donald Trump’s announcement of potential new tariffs on critical mineral imports—an aggressive trade stance that has further strained relations with China. The proposed tariffs, which could reach as high as 245%, have heightened fears of a prolonged trade war, further dampening global economic sentiment.
Investor behavior has notably shifted, with increased allocations toward gold amid recession concerns and waning confidence in US Treasuries, reports Business Insider. The combination of geopolitical uncertainty and economic volatility has made gold an increasingly attractive asset for risk-averse investors.
Market watchers believe this trend could continue if the Federal Reserve proceeds with the anticipated rate cut later in 2025, a move that typically supports gold prices by lowering the opportunity cost of holding the non-yielding asset.
Meanwhile, China’s response to the tariff threats was measured but firm. While emphasizing that it does not seek confrontation, the Chinese government made it clear that it will not remain silent under US pressure, highlighting the continued friction that is likely to influence global markets in the coming months.
In India, the global rally is being reflected in domestic markets as well, with gold prices edging closer to the ₹1 lakh per 10 grams mark, a psychological milestone that underscores the strength of the metal’s current bull run.
As the world navigates through rising geopolitical tensions and economic crosswinds, gold’s record-breaking performance reaffirms its long-standing role as a safe harbor in turbulent times.
