Gold has once again proven its position as a safe haven during economic uncertainty, reaching a new all-time high earlier today.
On April 10, 2025, spot gold prices soared to an ATH, reaching $3,171.49 per ounce during the trading session before settling at $3,160.82, marking a 2.6% increase for the day.
Factors Driving the Surge
The escalation of the U.S.-China trade war significantly influenced this surge. President Donald Trump announced an increase in tariffs on Chinese imports to 125%, up from the previous 104%, intensifying investor concerns about global economic stability and prompting a shift toward safe-haven assets like gold.
Additionally, major U.S. stock indices experienced notable declines amid the tariff announcements, with the Nasdaq Composite dropping 4.3% and the Dow Jones Industrial Average falling over 1,000 points, or 2.5%. This market volatility further drove investors toward gold as a protective measure.
Impact on Related Markets
The surge in gold prices positively impacted mining companies. Newmont Corporation led the S&P 500 with a nearly 5% increase, while Barrick Gold rose about 4%, Kinross Gold climbed 5%, and Gold Fields jumped over 8% to close at an all-time high. Furthermore, the U.S. dollar index slipped more than 1% against its rivals, making gold less expensive for holders of other currencies and further boosting demand.
Analysts attribute gold’s rally to a combination of tariff tensions, slowing economic growth, impending inflation, and heightened geopolitical risks. Wells Fargo raised its 2025 year-end gold forecast to $3,000-$3,200 per ounce, citing increased central bank purchases and a weaker dollar. This milestone surpasses the previous record set in October 2024, when gold prices reached $2,790.07 per ounce. The current rally is reminiscent of the 1980s surge but is considered more sustainable due to underlying economic factors.
Investors are advised to monitor geopolitical events and central bank actions closely, as these will play critical roles in shaping the trajectory of gold prices in the coming months.
Editorial Team
Reporter at Coindoo
Source: https://coindoo.com/gold-prices-reach-new-record-high-amid-escalating-u-s-china-trade-tensions/