Gold prices breached the key $3,200/oz level for the first time on Friday, fuelled by a weaker dollar and an escalating trade war that sent investors rushing toward safe-haven assets.Spot gold was up 1.4% at $3,217.78 an ounce as of 0350 GMT.
Bullion scaled an all-time peak of $3,219.84 earlier in the session, and has gained almost 6% this week, Reuters reported.United States gold futures climbed 1.9% to $3,237.50.The rapid weakening of the United States dollar seems to be the main driver of golds rebound at the moment.
That seems to reflect an ongoing exodus from USD-based assets, with stocks and bonds selloff amid tariff policy uncertainty, said Ilya Spivak, head of global macro at Tastylive.The dollar was down nearly 1% against its major peers, making greenback-priced bullion cheaper for overseas buyers.Major stock indexes also fell after United States President Donald Trump ratcheted up tariffs on Chinese imports to 145%, but hit a 90-day pause on previously announced tariffs for dozens of countries.China has been matching Trumps tariff hikes, sparking fears that Beijing could push duties on the United States beyond the current 84%.$3,500 is the next round number people will be looking at.
I suspect we wont get there immediately or without bumps along the way, Capital.coms financial market analyst Kyle Rodda said.Apart from tariffs, central bank demand, expectations of interest rate cuts by the Federal Reserve, geopolitical instability in the Middle East and Europe, and increased flows into gold-backed exchange-traded funds also fuelled the metals rally this year.United States consumer prices fell unexpectedly in March but inflation risks are tilted to the upside, data showed.Traders now bet that the Fed will resume cutting rates in June and probably reduce by a full percentage point by the end of 2025.Spot silver added 0.3% to $31.29 an ounce, while platinum dipped 0.1% to $936.85.
Palladium gained 0.8% to $916.18.The post Gold bolts past $3,200 on dollar slide, safe-haven flows first appeared on TINS News.