Safe-haven gold surpassed the key US$3,200 mark for the first time on Friday (Apr 11), spurred by a weaker dollar and economic concerns due to an intensifying trade war.
Spot gold jumped over 1 per cent to US$3,214.92 an ounce, as of 8.01am (4.01pm, Singapore time), after hitting a record high of US$3,219.84 earlier in the session. Bullion is up over 5 per cent so far this week.
US gold futures climbed nearly 2 per cent to US$3,233.80.
“Recession risks are mounting, bond yields are soaring, and the US dollar continues to weaken – all factors reinforcing gold’s role as a crisis hedge and inflation shield,” said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany.
US President Donald Trump suddenly paused his “reciprocal” tariffs on other countries hours after they came into effect earlier this week, but he ratcheted up duties on Chinese imports as punishment for Beijing’s initial move to retaliate.
The pause also did little to soothe business leaders’ worries about the fallout from Trump’s trade war and its chaotic implementation.
Global stocks fell and the dollar index sank to a decade low. A lower dollar makes greenback-priced bullion cheaper for overseas buyers.
Source: CNA
