Gold price records record high when trade tensions escalate

As of 3:15 pm EST, the most vibrant April contract closed at 2,934.3 USD/ounce, up 48.80 USD (1.69%). This precious metal has shown an impressive momentum since opening at $ 2,885/ounce in Australia's trading session on Monday, climbing continuously for 12 consecutive hours.

The latest price increase was activated by US President Donald Trump's statement on Sunday on the 25% tax imposition plan for imported steel and aluminum. These measures added to the existing tariff barrier, including a 10% tax rate for Chinese goods and proposed a 25% tax on imports from Mexico and Canada - the following measure is currently being delayed. In 30 days.

“It is clear that the tariff war is the main cause of increasing gold price; This reflects the increased instability and tensions in the global trade situation ” - Maryex's analyst Edward Meir said.

Since the beginning of 2025, Gold has set a new price record seven times, causing Blue Line Futures - Phillip Streible strategist, saying that "the continuous rising momentum from 45 degrees of gold from December can create a one. self -consolidated effect ”, giving the price towards 3,250 USD/ounce or even USD 3,500/ounce.

Investors pay special attention to the increased risk of inflation due to these tariff policies. Although the impact of tax on US imported goods often has a latency, the market is currently focusing on consumer price index reports (CPI) and production price index (PPI) this week.

Meir thinks these indicators can significantly affect the trend of gold price, with lower numbers than expected to weaken USD and support the gain of gold.

Market movements are also affected by China's retaliation with a US $ 14 billion tariff package on US goods, along with a new pilot program that allows some Chinese insurance companies to invest. Maximum of 1% of the portfolio in gold - can create additional demand up to 27 billion USD, according to SP Angel experts.

The market will also closely monitor the hearing before the US National Assembly by the President of the US Federal Reserve (Fed) Jerome Powell on Tuesday and Wednesday.

The recent development of gold shows significant strength, with a series of increase in seven weeks in a row from December 30 - a unprecedented sustainable momentum since June 2020. This motivation has created an almost parabolic price trajectory, reflected in the continuous weekly candle models, strengthening the strong optimism of the market.