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Gold prices surged to an all-time high on Tuesday, April 1, as concerns over US President Donald Trump's new reciprocal tariffs fueled safe-haven demand. Investors rushed to gold amid fears of rising inflation and slowing economic growth.
Spot gold rose 0.6% to $3,142.83 an ounce as of 0310 GMT, after hitting a record $3,145.38 an ounce earlier in the session.
US gold futures climbed 0.7% to $3,171.80 per ounce.
In India, gold crossed ₹91,300 per 10 grams, recording an all-time high opening on the Multi Commodity Exchange (MCX).
Why is gold rising?
Gold’s rally comes after bullion recorded its strongest quarter since 1986.
The latest surge is driven by concerns over Trump’s impending tariffs, which could spark a global trade war.
“The anticipation of the April 2 US reciprocal tariffs has prompted investors to hedge against market volatility by moving into gold,” said Yeap Jun Rong, Market Strategist at IG.
Trump's tariffs and market impact
Trump is set to unveil his tariff plan on April 2, calling it "Liberation Day." The measures will target all nations, with additional tariffs on automobiles expected from April 3.
Markets fear these tariffs could slow economic growth, weaken equities, and boost inflation—all bullish signals for gold.
Key economic factors
Gold benefits from geopolitical instability and low-interest rates.
New York Federal Reserve President John Williams stated that maintaining current interest rates “for some time” will help policymakers analyse economic data before making adjustments.
This dovish stance supports gold prices.
Upcoming US economic data—such as job openings, ADP employment figures, and non-farm payrolls—will provide further insight into the Federal Reserve’s potential rate-cut path.
Rahul Kalantri, VP Commodities at Mehta Equities, noted, “Gold hit an all-time high, driven by trade concerns, weak equity markets, and geopolitical tensions. The Russia-Ukraine conflict and Trump’s threats against Iran further intensified safe-haven demand."
Investment outlook
Gold's bullish momentum is likely to continue as uncertainty looms over global trade.
Investors should watch for further developments in US tariff policies, geopolitical tensions, and central bank decisions, experts say.
For now, safe-haven demand remains strong, keeping gold on an upward trajectory.
-With Reuters inputs
