Gold started trading last week at $3,024 per ounce, then rose to a new record high of $3,087, reflecting growing interest in the yellow metal in global markets. Analysts expect gold to continue its rise if economic and geopolitical tensions persist, with markets anticipating the imposition of tariffs on April 2, which will have a significant impact on market trends. Regarding gold futures, June delivery reached $3,114.3 per ounce, up 0.75% from the previous price. This rise demonstrates the continued flow of investment into gold. This rise follows four consecutive weeks of gains, with gold gaining 2.15% this week, reaching an all-time high.
A combination of economic and geopolitical factors is contributing to this rise, as investors prefer gold as a safe haven amid growing global uncertainty. US threats to impose tariffs on autos are escalating the possibility of a trade war between the United States and other countries, while declining consumer confidence in the United States reflects concerns about the economic situation.
Moreover, the continued decline in the US dollar and rising inflation are stimulating demand for gold. US bond yields have also declined, and expectations of a Federal Reserve interest rate cut in 2025 have increased, weakening the dollar by 0.3% to close at 104.04, increasing the attractiveness of gold as an investment vehicle.
Geopolitically, tensions in the Middle East and the Red Sea are adding to the pressure on global markets, threatening the stability of global energy supplies and raising concerns about the future of the global economy. Any escalation in these regions could lead to increased geopolitical risks, boosting demand for gold as a risk hedge.
Economic events this week will also have a significant impact on gold markets. The implementation of tariffs between the United States and the European Union is expected to heighten trade tensions. Several economic reports will also be released, such as the US jobs report on April 1, the employment index data on April 3, and the nonfarm payrolls report on April 5, which could directly impact market expectations regarding interest rate policy and gold prices.