Gold Surpasses $3,400 an Ounce Amid Escalating Trade Tensions and Dollar Weakness

Gold hit a new record high as its spot price surged by 2.35% to $3,404.96 per ounce, driven by growing demand for the precious metal as a safe haven amid intensifying trade tensions between the United States and China, and a weakening U.S. dollar.

At the same time, the U.S. dollar index fell to its lowest level in more than three years, further boosting gold’s appeal to international investors.

Key Factors Behind Gold’s Rise:

Escalating Trade Tensions: U.S. President Donald Trump’s announcement of “reciprocal” tariffs on more than 180 countries sparked fears of a global trade war, prompting investors to seek refuge in gold.

Declining Confidence in the Dollar: Public criticism by Trump of Federal Reserve Chairman Jerome Powell—along with speculation about Powell’s possible dismissal—raised investor concerns over the independence of the U.S. central bank.

Rising Central Bank Demand for Gold: Continued gold purchases by central banks such as the People’s Bank of China and the Reserve Bank of India reflect their intent to diversify reserves and reduce reliance on the dollar.

In this context, analysts expect gold prices to continue climbing, with some forecasting the metal could reach $3,500 per ounce in the coming months. Amid these developments, investors are increasingly turning to gold as a hedge against economic and geopolitical risks—reinforcing its status as a global safe haven.