Gold prices increased by nearly 2% and surpassed the important threshold of 3,200 USD/ounce in the trading session on Friday, as concerns about an increased economic recession amid the escalating US-China trade war and a weakening USD.
At 5:20 p.m. (Vietnam time), spot gold prices increased by 1.7% to $3,227.39/ounce, after hitting a record high of $3,237.56/ounce in the previous session. Since the beginning of the week, gold has increased by more than 6%.
US gold futures also increased by more than 2%, reaching 3,246.3 USD/ounce.
The risk of recession is increasing, bond yields are skyrocketing and the US dollar continues to weaken all of which are factors that strengthen golds safe-haven and inflationary hedge role said Alexander Zumpfe, precious metals trader at Heraeus Metals Germany.
China on Friday raised import tariffs on US goods to 125%, in response to US President Donald Trump's increase in tariffs on Chinese goods to 145%. This move increases trade tensions and threatens global supply chains.
Global stock indexes fell, the USD also fell sharply. A weak USD makes gold, which is priced in greenback, cheaper for foreign buyers.
Since last year, gold prices have maintained a strong increase, setting many record peaks and increasing nearly 21% this year, thanks to the demand for shelter, buying from central banks and the flow of money into gold ETFs.
We believe gold could continue to rise in a positive scenario, targeting $3,400 to $3,500 an ounce in the next few months, UBS analyst Giovanni Staunovo predicted.
Data released on Thursday showed that US consumer prices unexpectedly fell in March. Investors are also waiting for data on US manufacturing prices to be released at 7:30 p.m. (Vietnam time) to assess the monetary policy direction of the US Federal Reserve (FED).
Many traders now expect the Fed to start cutting interest rates from June and could cut a total of 1 percentage point before the end of 2025.
Spot silver prices increased by 0.8% to 31.46 USD/ounce, platinum increased by 0.3% to 940.45 USD/ounce and palladium increased by 2.05% to 927.29 USD/ounce.
