Gold surged to an all-time high above $3,200 an ounce on Friday, driven by mounting economic concerns, a weaker dollar, and heightened trade tensions. Spot gold rose by 0.86% to $3,216.60, briefly touching $3,219.84, while U.S. gold futures climbed to $3,234.70 (+1.80%). The metal has gained over 5% this week and more than 21% this year.
The rally reflects growing investor demand for safe-haven assets, as fears of a global recession intensify following U.S. President Trump’s erratic tariff policies. While Trump announced a temporary 90-day pause on certain tariffs, duties on all Chinese imports have surged to at least 145%, deepening global economic uncertainty.
“Gold is the best place to be in the market right now,” said Liu Yuxuan, a metals researcher in Shanghai. Analysts point to falling bond yields, a sliding dollar, and increased central bank buying as key drivers. A weaker dollar makes gold more attractive to overseas buyers.
Thursday’s U.S. inflation data showed a surprise dip in consumer prices, increasing speculation that the Federal Reserve will cut interest rates - potentially up to four times by year-end. Lower rates typically support gold, which does not yield interest.
UBS projects gold could rise further to $3,400–$3,500/oz in the coming months.