Gold Surges Past $3,150 as Global Uncertainty Mounts
Gold prices are soaring as investors rush to safe-haven assets. The yellow metal hit a new all-time high of US$3,168 before slightly retreating. Despite this pullback, gold remains firmly above US$3,148, gaining 0.72% for the day.
Also Read: ASX Bloodbath: Markets Bleed as Investors Panic Over Tariffs
Massive Gains Over the Past Year
Gold’s performance in the last year has been remarkable. Prices have surged by 36.58% over the past 12 months. Over five years, the metal has nearly doubled, rising 91.35%. Over two decades, gold has skyrocketed by 635.82%.
Why Is Exploding?
Several factors are driving its meteoric rise. Rising geopolitical tensions, surging inflation fears, and aggressive tariff policies are pushing investors towards safe-haven assets.
Trump’s Tariff Bombshell Sparks Panic
Donald Trump’s recent announcement of new “reciprocal tariffs” has sent shockwaves through global markets. The US has imposed a 10% blanket tariff on imports, with some countries facing much steeper levies.
- China: A staggering 54% total tariff after new and previous duties.
- European Union: Facing 20% tariffs on major exports.
- Japan: Hit with a 24% tariff on select goods.
These aggressive trade measures have intensified fears of a global economic slowdown. Investors are flocking to gold as a hedge against market chaos.
Also Read: US Tariff Bombshell: Australia Hit With Minimum 10% Levy Amid Global Trade Dispute
US Recession Fears Add Fuel to the Fire
Economic indicators point to growing risks of a US recession. Bond yields are dropping, and the US dollar is weakening, making gold more attractive. Safe-haven demand is surging as investors seek stability amid economic turmoil.
Is This Just the Beginning?
Experts believe it’s rally is far from over. Market analysts predict prices could breach the $3,200 mark soon. The upcoming US Nonfarm Payrolls report will be crucial in determining gold’s next move.
Technical Indicators Suggest More Upside
It remains in overbought territory, but analysts see room for further gains. The Relative Strength Index (RSI) indicates strong momentum. Any dip could be a temporary pullback before another surge higher.
Key Levels to Watch
- Immediate Support: $3,100
- Resistance: $3,170 and $3,200
If breaks above $3,200, the next target could be $3,250, driven by increased investor demand.
Investors Rush to ETFs and Mining Stocks
With gold prices soaring, investors are pouring into gold-backed exchange-traded funds (ETFs) and mining stocks. Companies like Newcrest Mining and Northern Star Resources are seeing a surge in demand.
Gold Miners Shine Bright
Mining stocks are outperforming the broader market. Investors see them as leveraged bets on rising prices. With record-breaking rally, mining companies are positioned for significant gains.
What’s Next for ?
The rally shows no signs of slowing down. With global trade wars heating up and recession fears intensifying, the yellow metal could continue its upward trajectory. Investors are bracing for more volatility, and gold remains their top choice for protection.
The question now is: how high can go?
