Gold price surpasses $3,300 to new record as tariff war ramps up
Gold soared to another record high on Wednesday to breach the $3,300-an-ounce level, as escalating US-China trade tensions steered investors towards the safe-haven asset.
Spot gold rose nearly 2.7% to $3,313.45 per ounce as of 10:30 a.m. ET, having set a new peak of $3,318.80 just before that. US gold futures also gained 2.7% to $3,326.80 per ounce.
The US dollar, meanwhile, continued to depreciate against its rivals to hold near a three-year low.
Fueling gold’s rally, US President Donald Trump on Tuesday ordered a probe into possible tariffs on all critical minerals imports, marking another escalation in his dispute with global trade partners and an attempt to pressure industry leader China.
“Gold remains heavily supported by a broadly weaker dollar, uncertainty around tariff announcements and fears about a global recession,” Lukman Otunuga, senior research analyst at FXTM, commented.
“Beyond $3,300, it’s all about psychological levels for gold prices. Bulls may target $3,400, $3,500, and upwards. However, a bout of profit-taking or positive US-China trade developments could trigger a selloff.”
Gold has hit a series of record highs and crossed multiple key thresholds in recent months as US President Donald Trump and his unpredictable tariff policies wreaked havoc on the global markets. For the year, bullion has risen 27% — making it one of the top-performing assets so far.
“I’d love to have a pound for every time someone said it’s a record high in gold in the last few weeks,” Evy Hambro, thematic and sector investing global head at Blackrock Inc., said on Bloomberg Television. “The gold market is kind of thriving in this period of uncertainty, but the foundations are very tangible and real.”
Outlook bullish
Major banks and industry experts remain optimistic about gold’s prospects over the coming quarters, as investors add to their holdings in gold-backed exchange-traded funds (ETFs) and central banks continue to accumulate bullion.
Gold ETFs saw an inflow of 226.5 tonnes worth $21.1 billion in the first quarter of 2025, the largest in three years. Central bank purchases were robust in March, with China adding to its reserves for the fifth straight month.
Citing these driving forces, Goldman Sachs has already upgraded its gold forecast three times this year and sees the precious metal rallying to $4,000 an ounce by mid-2026.
Rick Kanda, managing director at The Gold Bullion Company, also believes that $4,000 “is absolutely possible, and considering the economic pressures, I think it may even be probable.” If such pressures continue as forecasted, gold-backed stability will be adopted globally, he added.
In a Bank of America global fund manager survey this week, 42% of respondents expected gold to be the best performing asset class in 2025, up from 23% in March.
(With files from Bloomberg and Reuters)