Gold Reaches All-Time High - Again!

Over the past week, gold surged to new all-time highs, reaching USD $3,149 per ounce, lifting silver past $34 per ounce. This rally was fueled by escalating tariff uncertainties from the U.S. and potential retaliatory measures from Europe, Canada, and Japan. Markets are anticipating more clarity on April 2, which could trigger a “sell-the-event” reaction—potentially pushing gold lower and equities higher. However, silver’s longer-term outlook remains strong, supported by a weaker U.S. dollar, renewed investment demand amid inflation concerns, and gold’s continued strength as a base. If gold holds above $3,000, silver may break out of its $30–$35 range and target a new, higher range of $35–$40 in the near term.

Investor interest in gold-backed exchange-traded funds (ETFs) has intensified, with significant inflows as market participants seek safe-haven assets. For instance, State Street's gold funds attracted $5.4 billion in inflows during 2025, reflecting heightened demand amid ongoing market volatility. Additionally, global gold ETFs recorded their third consecutive month of inflows in February, increasing total assets under management by 4.1% and collective holdings by 3.1%.

Gold's role in supporting the U.S. dollar remains multifaceted. While the dollar often serves as a global benchmark, gold acts as a hedge against both dollar depreciation and inflation. Central banks worldwide—including those of China and Russia—have been increasing their gold reserves to diversify away from dollar-denominated assets and enhance economic stability. This strategic accumulation underscores gold’s value as a store of wealth and its role in reinforcing confidence in national currencies.

In summary, the gold market has been marked by record prices and rising investor interest amid persistent trade tensions and economic uncertainty. Sustained inflows into gold ETFs and continued central bank buying highlight gold’s enduring appeal as a safe-haven asset and its critical role in the global financial system.