Gold prices soared to an all-time high on Monday, breaking past the critical $2,900 level for the first time as investors flocked to the safe-haven asset. The surge comes in response to U.S. President Donald Trump’s latest tariff threats, intensifying concerns over inflation and global trade instability.
As of 09:43 a.m. ET (1443 GMT), spot gold skyrocketed 1.6% to $2,905.25 per ounce, after hitting a record $2,910.99 earlier in the session. Meanwhile, U.S. gold futures jumped 1.5% to $2,930.90.
According to Marex analyst Edward Meir, “The tariff war is fueling gold’s rise, reflecting heightened uncertainty and escalating trade tensions worldwide.”
Trump announced plans on Sunday to impose a fresh 25% tariff on all steel and aluminum imports. He also hinted at reciprocal tariffs that would match other countries’ rates and take effect immediately.
With inflationary fears on the rise, investors are eagerly awaiting the U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) data due later this week. Lower-than-expected CPI and PPI numbers could weaken the dollar and push gold even higher, while stronger figures may boost U.S. Treasury yields and temporarily cap gold’s gains.
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Federal Reserve Chair Jerome Powell is set to testify before Congress on Tuesday and Wednesday, with markets closely monitoring his stance on inflation and interest rates.
Gold has already hit its seventh record high this year, fueled by economic uncertainty, trade war fears, and persistent inflation concerns. Market experts believe this uptrend may continue, with Phillip Streible, chief market strategist at Blue Line Futures, predicting a potential surge to $3,250 or even $3,500.
“The market’s bullish momentum has created a self-fulfilling prophecy. If investors keep piling into gold, we could easily see new highs in the coming months,” Streible noted.
Gold’s rally also lifted other precious metals; Spot silver climbed 1% to $32.12 per ounce, hitting its highest level in three months. Platinum edged up 1.1% to $986.80 per ounce and Palladium surged 2.2% to $985.50 per ounce.
With global economic uncertainty intensifying, gold’s bullish momentum shows no signs of slowing down. If inflation concerns persist and tariffs escalate, analysts predict further gains for the yellow metal. Could $3,500 be the next big milestone?
