Gold prices have set a new all-time high of $3245 per ounce during Asian trading, with Chinese gold prices marking their third consecutive daily record. Trading volumes on the Shanghai Gold Exchange (SGE) have surged nearly 70% in April so far, reaching the highest level since the height of the Covid-19 crisis in August 2020. • **China’s Gold Rush:**
- Chinese gold prices marked their third consecutive daily record, with trading volumes reaching their highest level since the Covid-19 crisis.
- Gold prices on the Shanghai Gold Exchange (SGE) fixed at third consecutive SGE benchmark high of ¥762 per gram, equivalent to $3247 per ounce.
The People’s Bank of China has allocated fresh gold import quotas for some commercial banks, according to Bloomberg, as Beijing responds to strong haven demand from institutional and retail investors in the face of an escalating trade war. The allocation is part of Beijing’s efforts to boost domestic gold production and reduce the country’s reliance on imports. • **US-China Trade Tensions:**
- US-China trade tensions have intensified, with the US imposing tariffs on Chinese goods and China raising its tariffs on US goods.
- The Trump administration has announced a 90-day pause on reciprocal tariffs except for a 145% tariff on most imports from China.
- The Chinese government has put civilian government officials on “wartime footing” to respond to the trade tensions.
The trade tensions have had a significant impact on the global economy, with many investors seeking safe-haven assets such as gold. The yellow metal has been driven by strong demand from institutional and retail investors, who are seeking to diversify their portfolios and protect themselves against market volatility. • **Global Market Reaction:**
| Market | Reaction |
|---|---|
| European Stocks | Rallied more than 2% on Monday |
| Futures for S&P 500 and Nasdaq 100 | Advanced with Apple Inc shares jumping as much as 6.4% in premarket trading |
| Dollar Index | Fell for a fifth day to a three-year low |
Gold prices priced in Euros fell 0.7% to €2828 per ounce on Monday, while the UK gold price in Pounds per ounce dropped 1.2%. The Dollar index, which measures the value of the US currency against its major peers, has fallen for a fifth day to a three-year low. • **Market Forecasts:**
- Gold prices are expected to continue their upward trend, driven by strong demand from institutional and retail investors.
- Goldman Sachs has raised its overall price forecast to $3700 per ounce by the end of the year.
- UBS and Bank of America predict gold prices will reach $3500 in 2025.
“China has been bidding gold every single day last week, fuelled by tariff uncertainty and yuan depreciation,” said a precious metals trader. The surge in trading volumes and gold prices is a clear indication of the shift in appetite for safe-haven assets. “Gold continues to hit record highs amid strong haven buying,” said Daniel Hynes, Senior Commodity Strategist at ANZ. Despite the risks and uncertainty remaining high, gold prices are expected to continue their upward trend. The new highs in gold prices are signalling a shift in appetite for US assets, with confidence in the US clearly being shaken. As a result, investors are looking to diversify their portfolios and seek safe-haven assets such as gold. “The new highs in gold are signalling a shift in appetite for US assets,” said Ryan McIntyre, senior managing partner at the Canadian global asset management firm Sprott. “Confidence in the US has clearly been shaken so people are looking to diversify.”
“Confidence in the US has clearly been shaken so people are looking to diversify,” said Ryan McIntyre, senior managing partner at the Canadian global asset management firm Sprott. The US president has announced a 90-day pause on the reciprocal tariffs except for a 145% tariff on most imports from China, while China has raised its tariffs on US goods to 125%. The trade tensions have had a significant impact on the global economy, with many investors seeking safe-haven assets such as gold. As the trade tensions continue to escalate, it is likely that gold prices will continue to rise. The Chinese government has put civilian government officials on “wartime footing” to respond to the trade tensions. The UK gold price in Pounds per ounce dropped 1.2%, while gold prices priced in Euros fell 0.7% to €2828 per ounce. The global market reaction to the trade tensions has been mixed, with European stocks rallying more than 2% on Monday, while futures for the S&P 500 and the Nasdaq 100 advanced with Apple Inc shares jumping as much as 6.4% in premarket trading. The US dollar has fallen for a fifth day to a three-year low, while the Euro has strengthened against the US dollar in FX markets. Gold prices priced in Euros fell 0.7% to €2828 per ounce on Monday, while the UK gold price in Pounds per ounce dropped 1.2%. Silver prices recovered from an earlier 1.5% drop to $31.30 per ounce.
The US president has announced a 90-day pause on the reciprocal tariffs except for a 145% tariff on most imports from China, while China has raised its tariffs on US goods to 125%. “Confidence in the US has clearly been shaken so people are looking to diversify,” said Ryan McIntyre, senior managing partner at the Canadian global asset management firm Sprott. Gold prices are expected to continue their upward trend, driven by strong demand from institutional and retail investors.
The US president has announced a 90-day pause on the reciprocal tariffs except for a 145% tariff on most imports from China, while China has raised its tariffs on US goods to 125%. Gold continues to hit record highs amid strong haven buying.
Despite the risks and uncertainty remaining high, gold prices are expected to continue their upward trend. Confidence in the US has clearly been shaken so people are looking to diversify.
The Dollar index, which measures the value of the US currency against its major peers, has fallen for a fifth day to a three-year low. Gold prices are expected to continue their upward trend, driven by strong demand from institutional and retail investors.
The global market reaction to the trade tensions has been mixed, with European stocks rallying more than 2% on Monday, while futures for the S&P 500 and the Nasdaq 100 advanced with Apple Inc shares jumping as much as 6.4% in premarket trading.