Jamie Spencer
Gold prices surged to a new all-time high on Monday, as the dollar weakened and investor fears over the economic impact of U.S.-China trade tensions drove demand for safe-haven assets. Spot gold rose by 2.6% to reach $3,415.24 an ounce at 10:46 a.m. ET (1446 GMT), surpassing the previous record of $3,424.25 earlier in the session.
Weak Dollar Fuels Gold Surge
The weakening U.S. dollar played a significant role in gold’s rise. As investor confidence in the U.S. economy continued to wane, partly due to President Donald Trump’s comments about Federal Reserve Chairman Jerome Powell, the dollar tumbled. A weaker dollar makes gold more appealing to holders of other currencies, further driving up demand for the precious metal.
“As tariff tensions continue to move at a fevered pitch, we continue to see gold prices move to the upside as a safe haven response,” said David Meger, director of metals trading at High Ridge Futures. He added that although pullbacks and profit-taking could occur, the underlying trend remains bullish, with gold likely to see a sideways-to-higher trajectory.
Gold’s Record-Breaking Run
Gold has been on a remarkable bull run, hitting multiple record highs throughout 2025. Since the beginning of the year, gold has gained over $700, with its price surpassing $3,300 just last Wednesday. The metal’s momentum shows no signs of slowing, with prices continuing to climb by $100 in a matter of days, as the trade war and economic uncertainties spur demand for safe assets.
These rapid daily price movements signal that the market is nearing a potential climax. Jim Wyckoff, senior analyst at Kitco Metals, noted, “These much bigger daily price moves in gold are one early clue this very mature bull market run is close to climaxing and that a near-term market top may be close at hand, from a time perspective, more so than a price perspective.”
Other Metals See Mixed Performance
While gold continues to shine, other metals saw more mixed results. Spot silver rose slightly by 0.2%, reaching $32.66 an ounce. Platinum, however, was down 1% at $957.15, and palladium slipped by 3%, falling to $934.34. These fluctuations reflect the ongoing market volatility influenced by global trade tensions and investor sentiment.
The Outlook for Gold
With the U.S.-China trade war continuing to escalate and no immediate resolution in sight, gold is likely to remain a favored asset for investors seeking security in uncertain times. While there may be occasional pullbacks and profit-taking, the overall trend appears to be a continued upward trajectory. As the global economic landscape remains uncertain, gold’s role as a hedge against risks and inflation is only growing stronger.
