Gold reaches unprecedented levels amid rising concerns over economic growth. On Wednesday, gold prices surged to an unprecedented peak, fueled by a declining dollar, escalating trade war tensions, and apprehensions regarding global economic growth stemming from U.S. President Donald Trump’s tariff initiatives, which prompted a significant influx into safe-haven assets. Gold, often regarded as a secure investment amid geopolitical and economic turmoil, has reached unprecedented levels this year, particularly benefiting from a low-interest-rate landscape.
Spot gold experienced a notable increase of 1.1%, reaching $3,261.79 an ounce, following a peak of $3,266.65 per ounce earlier in the trading session. U.S. gold futures experienced a notable increase of 1.2%, reaching a price of $3,279.20. The dollar index experienced a decline of 0.3% against its competitors, which has enhanced the appeal of gold for holders of other currencies.
On Monday, filings in the Federal Register indicated that the U.S. administration is progressing with investigations into the imports of pharmaceuticals and semiconductors, aiming to implement tariffs on these goods. In a significant move last week, Trump increased tariffs on Chinese imports to 145%, leading Beijing to respond by elevating tariffs on American goods to 125%. Investors are closely monitoring the upcoming U.S. retail sales data, set to be released later today, as it will provide critical insights into the state of the economy and the Federal Reserve’s monetary policy strategies.
ANZ has increased its year-end gold price forecast to $3,600 per ounce, while also adjusting its six-month forecast to $3,500. ANZ highlighted that the escalating risks of a more profound recession, shifts in the geopolitical landscape, interruptions in global supply chains, concerns over rising inflation, and a changing interest rate outlook indicate that gold is likely to maintain its robust position in the near term.
Spot silver experienced a modest increase of 0.3%, reaching $32.40 per ounce, while platinum saw a slight decline of 0.1%, settling at $958.15. Similarly, palladium also dipped by 0.1%, with a price of $970.25.