On Friday, gold prices surged past the significant $3,200 per ounce mark for the first time, driven by a weakening dollar and escalating trade tensions that pushed investors towards safe-haven assets.
By 0350 GMT, spot gold had risen 1.4% to $3,217.78 an ounce, after reaching a record high of $3,219.84 earlier, gaining nearly 6% for the week. U.S. gold futures also saw a 1.9% increase, hitting $3,237.50.
Ilya Spivak, head of global macro at Tastylive, pointed out that the swift decline of the U.S. dollar is primarily fueling the current surge in gold prices. This trend appears to indicate a continuous move away from assets denominated in USD, as uncertainty over tariff policies has prompted sell-offs in stocks and bonds.
Moreover, Kyle Rodda, a financial market analyst at Capital.com, suggested that the next significant target for gold prices is $3,500. However, he cautioned that reaching such a level may take time, with obstacles emerging along the way.
Factors contributing to this year’s gold rally include central bank purchases, anticipated interest rate cuts by the Federal Reserve, geopolitical tensions, and increased investment in gold-backed ETFs.
As for other metals, spot silver edged up 0.3% to $31.29 an ounce, platinum slipped 0.1% to $936.85, and palladium rose by 0.8% to $916.18.
