New Delhi– Gold prices surged more than 6.5% this week, hitting a record high of $3,237 per troy ounce, marking the metal’s strongest weekly gain since the early days of the Covid-19 pandemic.
The rally comes as global investors seek safety amid mounting economic uncertainty, triggered by a fresh wave of U.S. tariffs imposed by President Donald Trump. The move has sparked fears of a full-scale trade war after China swiftly retaliated with a steep 125% tariff on American imports.
The sharp uptick in gold prices coincides with a sell-off in traditional safe-haven assets such as U.S. stocks and Treasury bonds. Simultaneously, the U.S. dollar has weakened significantly, hitting a three-year low against the euro — further boosting gold’s appeal as a stable store of value.
Market analysts cite growing concerns over recession risks, rising bond yields, and broader financial instability as key drivers behind the rush to gold. Investor sentiment has notably shifted, with both individual and institutional buyers increasing their exposure to the precious metal.
Gold-backed exchange-traded funds (ETFs) recorded their highest inflows since 2020 in the first quarter of this year. Central banks, particularly in emerging markets, are also ramping up their gold purchases in a bid to reduce reliance on the U.S. dollar.
In China, domestic demand for gold has grown so intense that buyers are now paying a premium over international prices — a clear indicator of deepening anxiety in Asian financial markets.
Reflecting the bullish trend, global financial services firm UBS has raised its 12-month gold price forecast to $3,500 per ounce — the second upward revision this year, underscoring the rapidly evolving investment landscape.
With skepticism growing around Trump’s aggressive trade policies, experts anticipate that gold will remain a preferred safe-haven asset in the months to come. (Source: IANS)
