Although a global trade war seems to have been averted for now, the relentless rise in gold prices highlights unresolved investor anxiety, with strong demand for safe-haven assets persisting. Today, gold reached another historic high, with April gold futures settling at $2,873.70, up 0.81%. Additionally, current market fundamentals strongly suggest that gold prices are likely to continue their upward trajectory.
Apart from U.S. tariff threats and geopolitical tensions, gold’s strong performance today was further bolstered by the dollar’s noticeable weakness over the past two days. The dollar index dropped 0.43% to 107.991, a continuation of its decline from Monday’s peak of 109.915.
While President Trump announced a 30-day delay in tariff implementation for Canada and Mexico, China was not granted such leniency. In response, China quickly announced retaliatory tariffs on imports from the U.S. and launched an antitrust investigation into Google. Unlike the trade disputes of 2018, this time China’s countermeasures are no longer limited to simple tariff increases but are more strategically flexible and targeted.
Joy Yang, Global Head of Index Product Management at MarketVector, said in an interview that despite gold prices reaching historic highs above $2,800 per ounce, there is still room for further gains. In her view, geopolitical uncertainty remains and will continue to support gold prices through 2025.
Yang noted that the demand for gold as a safe-haven asset extends beyond the implementation or non-implementation of specific tariffs. Instead, there is an ever-present possibility of unexpected events occurring, and investors are currently unsure how to navigate this kind of environment. Beyond geopolitical uncertainty, the recent unveiling of more affordable AI models by China has also shifted market expectations in the technology sector, further elevating gold’s role as a key diversification tool in investment portfolios.
She further explained that, with U.S. stock valuations near historic highs, investor sentiment has become increasingly nervous. This explains why more investors are choosing defensive assets like gold. “When you don’t know what’s going to happen in the future, you look for assets with low correlation to broader market surprises, and gold fits this profile perfectly. Compared to other assets, gold operates under its own rules, which is its inherent strength,” Yang said.
Finally, Yang emphasized that gold’s status as the ultimate safe-haven asset is closely tied to the composition of its buyers. In 2024, global central bank demand provided solid support for the rally in gold prices. She believes that central banks will continue to increase their allocation to gold. While speculative interest and investor demand may introduce short-term volatility in the gold market, the strong foundation of central bank demand will ensure that the overall trend remains upward.
