Gold Soars to Record High, Breaks Above $3,400 Amid Weak Dollar and Escalating Trade Tensions
Gold Soars to Record High, Breaks Above $3,400 Amid Weak Dollar and Escalating Trade Tensions
April 21, 2025 — Gold prices soared to a new all-time high, breaking through the $3,400 per ounce mark on Monday, fueled by a weaker U.S. dollar and rising global uncertainty amid intensifying trade tensions between the United States and China.
Latest Gold Prices:
- Spot Gold jumped 2.7% to $3,417.62/oz (intraday peak: $3,430.18)
- U.S. Gold Futures settled up 2.9% at $3,425.30/oz
- On Tuesday morning (Asia time), gold climbed another 0.4% to $3,436.01/oz, according to Bloomberg
Dollar Weakness & Trump-Powell Clash Fuel Demand
The U.S. dollar fell to a three-year low after President Donald Trump launched sharp criticism against Fed Chair Jerome Powell, pressuring the central bank to lower interest rates amid rising economic concerns. The dollar's decline made gold more attractive to non-dollar investors, adding to buying pressure.
Trade War Rhetoric Escalates
China accused Washington of misusing tariffs and warned other nations against signing trade deals with the U.S. that disregard Chinese interests. The ongoing tensions are further driving demand for safe-haven assets like gold.
Analyst Insights:
- David Meger, Director of Metals Trading at High Ridge Futures:
“With persistent trade uncertainty and global instability, gold continues to serve as a reliable hedge. We may see short-term pullbacks, but the broader trend remains bullish.”
- Jim Wyckoff, Senior Analyst at Kitco Metals:
“The increasingly volatile daily price swings could indicate the gold rally is approaching a near-term peak—more in terms of timing than absolute price.”
2025 Gold Performance:
- Gold has surged over $700 since the start of the year.
- It broke $3,300 just last week and continued its momentum by adding another $100+ in just a few sessions.
Other Precious Metals:
- Silver held steady at $32.60/oz
- Platinum dipped 0.6% to $961.61/oz
- Palladium dropped 3% to $934.25/oz