Gold prices increased sharply to an all-time high on Tuesday, as investors rushed to buy gold to prevent potential negative impacts from US President Donald Trump's counter-tax plan.
After reaching a record of 3,148.88 USD/ounce, world gold prices tend to cool down. However, this precious metal is still at a very high level. Recorded at 16:34 on April 1, 2025 (Vietnam time), the world gold price listed on Kitco was at 3,127 USD/ounce.
At 07:45 GMT, US gold futures also increased by 0.1%, to $3,153.40/ounce.
Gold is becoming a priority haven as investors await details of US President Donald Trump's tax plan, due to be applied to all countries on April 2.
The markets concerns about the tax response on February 2 make investors more defensive, risk-off, and shifting to gold as a way to protect their portfolios from upcoming volatility, said Yeap Jun Rong, market strategist at IG.
According to Mr. Rong, the current instability may continue to support gold prices in the short term, with the target of 3,200 USD/ounce.
On Monday, gold closed the first quarter of 2025 with its strongest increase since 1986 and surpassed the $3,100/ounce mark for the first time, marking one of the most impressive price increases in history.
In addition to the tariff factor, gold's increase this year is also supported by strong buying power from central banks, expectations of the US Federal Reserve (FED) to lower interest rates, geopolitical tensions in the Middle East and Europe, along with cash flow into gold ETFs.
Technically, gold's Relative Strength Index (RSI) has broken above 70, indicating that gold is in a state of overbought conditions.
However, according to Mr. Tim Waterer - head of market analysis at KCM Trade, tariff tensions may not stop after April 2, especially when auto taxes will be activated on April 3. This, combined with uncertain global growth prospects, will continue to retain gold buyers if there is a price adjustment.
The market this week will also be watching some important US economic data, including the report on the number of jobs needed to be recruited released today and the non-farm payrolls report on Friday.
In other precious metals, silver fell 0.7% to $23.83/ounce, platinum fell 0.9% to $984.25/ounce, while gold rose 0.4% to $986.79/ounce.
