1 day ago
Gold prices continued their upward momentum on Wednesday, April 2, after hitting a record high in the previous session. Investors sought refuge in the safe-haven metal amid growing concerns over US reciprocal tariffs and global economic uncertainty.
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Gold price trends
As of 0500 GMT, spot gold rose 0.2% to $3,116.72 per ounce.
On Tuesday (April 1), bullion touched an all-time high of $3,148.88 per ounce.
US gold futures remained steady at $3,116.72 per ounce.
In India, gold prices in the national capital stood at ₹89,030 per 10 grams, while MCX gold traded at ₹88,850 per 10 grams.
Philip Newman, Managing Director of Metals Focus, attributed the rally to "safe-haven buying amid ongoing geopolitical uncertainty, which shows no sign of easing."
Key factors driving gold’s surge
US tariff uncertainty: The market awaits the implementation of new tariffs later today, which US President Donald Trump has termed "Liberation Day." The move could trigger inflation, slow economic growth, and intensify trade disputes.
Economic slowdown concerns: A weaker US economy and rising inflation fears are fueling expectations of interest rate cuts by the Federal Reserve, further boosting gold’s appeal.
Geopolitical risks:
Tensions in the Middle East and Europe, along with escalating trade disputes, have increased demand for gold as a hedge.
Central bank demand: Strong buying by global central banks has reinforced bullish sentiment.
ETF inflows: Increased investments in gold-backed exchange-traded funds (ETFs) signal sustained investor confidence in the metal.
Outlook: How high can gold go?
Newman believes gold could reach $3,300 per ounce in the coming months.
Aakash Doshi, Global Head of Gold Strategy at State Street Global Advisors, sees a possible bull case scenario where gold tests $3,400 per ounce over the next nine months.
Rahul Kalantri, VP Commodities, Mehta Equities, said, "Despite the short-term pullback, trade tensions are likely to sustain gold’s safe-haven appeal."
Colin Shah, MD, Kama Jewelry, added, "By the end of 2025, gold prices could touch $3,250 per ounce, driven by factors such as trade tariffs, a weaker US dollar, and geopolitical tensions."
Markets now await the ADP employment report later today and the US non-farm payrolls data on Friday (April 4), which could influence the next moves in gold prices.
Investment perspective
With gold hitting record highs, experts suggest that investors consider staggered purchases rather than lump-sum investments.
Given the volatile macroeconomic environment, gold remains a crucial asset for diversification and wealth preservation.
