Daijiworld Media Network - New Delhi
New Delhi, Apr 13: Gold prices skyrocketed this week, climbing more than 6.5% to an all-time high of $3,237 per troy ounce, marking the metal's strongest weekly rally since the onset of the COVID-19 pandemic.
This surge is largely driven by mounting global economic anxiety after a fresh wave of US tariffs, introduced by President Donald Trump, rattled investors. As traditional safe-haven assets like US equities and Treasury bonds face broad sell-offs, gold has emerged as a preferred refuge.
Compounding the market turbulence, the US dollar has weakened sharply, hitting a three-year low against the euro — a development that further boosts the appeal of gold for international buyers.
On Friday, the situation escalated as China retaliated with a steep 125% tariff on US imports, fueling fears of a deeper trade war. Investors rushed toward gold in response, a move often seen during periods of heightened geopolitical and financial uncertainty.
Analysts attribute the growing demand to a mix of recession concerns, rising bond yields, and overall financial instability. Not just retail investors, but institutional players and central banks are increasing their gold holdings.
Gold-backed exchange-traded funds (ETFs) saw their highest inflows since 2020 during Q1, underscoring the rising appetite for the precious metal. Meanwhile, central banks, particularly from emerging economies, are actively stockpiling gold in an effort to diversify away from the US dollar.
In China, robust local demand has led to gold trading at a premium compared to global benchmarks, signaling intensifying unease within Asian markets about the global financial outlook.
In response to these dynamics, the Union Bank of Switzerland (UBS) has once again revised its 12-month gold price forecast upward — now predicting prices could reach $3,500 per ounce. This is the bank’s second upward revision this year, reflecting the rapidly shifting investment climate.
With skepticism mounting around President Trump's confrontational trade strategy, experts anticipate that the flight to gold is far from over.