Gold prices soared to unprecedented highs Wednesday, reaching over $3,350 an ounce, as escalating trade tensions triggered by President Trump’s latest tariffs sent investors rushing for safe havens.
Spot gold surged as high as $3,357.78 an ounce early Wednesday, continuing its remarkable run-up amid deepening uncertainty around U.S.-China trade relations and fears of a global recession. U.S. gold futures settled slightly lower at $3,324.50, up 3.3% for the day.
Analysts attributed gold’s powerful rally primarily to President Trump’s move on Tuesday to investigate potential tariffs on all critical minerals imported to the U.S., a direct challenge aimed at pressuring China and other global trade partners.
This latest escalation drove investors away from riskier assets and into gold, historically viewed as a secure investment during turbulent economic times.
Federal Reserve Chairman Jerome Powell further amplified market fears, acknowledging Wednesday that U.S. economic growth is slowing due to modest consumer spending and uncertainty stemming from the trade war.
Powell’s comments intensified investors’ anxiety, sending Wall Street sharply lower and weakening the dollar to a fresh six-month low.
“A combination of heightened uncertainty around tariffs, an anticipated slowdown in economic growth, inflation fears, and increasing prospects of lower interest rates set a perfect backdrop for the precious metal to record further gains,” said ANZ Research analysts Brian Martin and Daniel Hynes in a statement.
The dollar’s continued slump, nearing its weakest point in three years, made gold increasingly attractive to foreign investors, further fueling the metal’s rise. “Gold remains heavily supported by a broadly weaker dollar, uncertainty around tariff announcements, and fears about a global recession,” noted Lukman Otunuga, a senior analyst at FXTM.
Despite the bullish outlook, experts warned of potential volatility ahead. Ole Hansen, head of commodity strategy at Saxo Bank, cautioned investors that gold’s rally had “become a bit unhinged,” making it susceptible to corrections if positive developments emerge in U.S.-China negotiations or if investors begin profit-taking.
Gold’s relentless surge has marked a nearly 28% gain so far this year, surpassing its strong performance from 2024.
Silver and platinum prices also rose amid heightened investor anxiety, with silver climbing to $32.85 an ounce and platinum reaching $967.45.
The climbing gold prices signal both the strength and turbulence stemming from the administration’s aggressive stance on trade. It reflects the administration’s commitment to confronting China on economic practices despite short-term market volatility.