Gold Soars to Record High as Weak Dollar and Trade Fears Fuel Safe-Haven Rush

Gold prices surged past $3,400/oz on Monday, April 21, setting a historic high as a weakening dollar and escalating U.S.-China trade tensions drove investors toward safe havens. Spot gold hit $3,424.25/oz intraday, while U.S. futures climbed to $3,396.10, marking a 29% year-to-date gain – its strongest rally in decades.

 

The dollar’s three-year low amplified gold’s appeal, while Trump’s “reciprocal tariffs” and China’s warnings against U.S.-aligned trade deals intensified stagflation fears. Analysts cite central bank demand and geopolitical risks, including Russia-Ukraine tensions, as additional catalysts.

 

“Gold’s rise reflects market anxiety over tariffs and a potential global recession,” noted IG strategist Yeap Jun Rong. With prices projected to reach $3,805 by 2026, the metal remains a top hedge against volatility.

 

Source: Reuters, WSJ, Sky News