Gold Prices Climb for Third Week as Trade War Tensions Shake Markets

Gold is on track for its third consecutive weekly gain as investors flock to the precious metal for stability. With the White House planning a new wave of tariffs on April 2, financial markets are on edge. Gold, known as a safe-haven asset, has gained significant interest, trading just $20 below its recent record high of $3,057.49 per ounce.

This year alone, gold has surged by 16%, achieving 15 all-time highs. Ongoing geopolitical tensions in the Middle East and Ukraine, alongside fears of a prolonged trade war, have contributed to the metal’s upward momentum. Some analysts now predict gold could reach $3,500 per ounce in the coming months as uncertainty lingers.

While gold shines as a preferred investment, recent economic reports from the US offer a mixed outlook. Existing home sales have exceeded expectations, reflecting consumer confidence. At the same time, stable jobless claims suggest a resilient labor market. However, inflationary pressures and slowing economic growth remain key concerns.

The Federal Reserve’s recent decision to keep interest rates steady has left investors questioning the central bank’s next move. Many anticipate rate cuts later this year, a scenario that would further support gold prices. Unlike interest-bearing assets, gold becomes more attractive when borrowing costs decline.

Traders are also grappling with rising freight costs, which are pushing up the price of imported goods. This trend is adding to inflation fears and increasing gold’s appeal as a hedge against economic instability. Meanwhile, the Bloomberg Dollar Spot Index remains relatively unchanged, providing little resistance to gold’s ascent.

By midday in London, gold prices dipped slightly by 0.3%, settling at $3,034.92 per ounce. Despite the minor decline, the metal remains on course for a 1.7% weekly gain. Other precious metals, including silver, platinum, and palladium, also experienced slight losses.

Investors are likely to monitor economic reports and key announcements from the Federal Reserve and the White House. With trade conflicts unresolved and financial uncertainty lingering, gold is expected to retain its appeal as a safe investment choice, making further price increases possible.

Also Read: Gold Prices Could Climb Higher in 2025 as Tariff Concerns Grow