Gold breaks above USD 3.000 as trade tensions

9 April 2025

Gold Breaks Above USD 3.000 As Trade Tensions And Global Risks Increase

Today’s markets analysis on behalf of Konstantinos Chrysikos, Head of Customer Relationship Management at Kudotrade

Gold prices climbed above USD 3.000 on Wednesday as demand for safe-haven assets remained strong amid escalating trade tensions and mounting fears of global recession and inflation. The surge followed confirmation that US tariffs on dozens of countries took effect, with China facing a punitive 104% levy.

Meanwhile, gold benefited from a weaker dollar and data showing the strongest quarterly ETF inflows since 2022, driven by cautious sentiment among North American investors amid growing concerns over inflation and economic stability. If this trend persists, gold prices could continue to gain traction and potentially return near their previous high.

On the geopolitical front, tensions continued in the Middle East and Eastern Europe, which could reinforce the appeal of safe-haven assets like gold.

Looking ahead, investor attention turns to the release of the Fed’s meeting minutes and Thursday’s CPI data. A soft inflation print may validate market bets on rate cuts and benefit non-yielding assets, while stronger figures could dampen gold’s momentum.

 

Zaid Barem / ymm