Gold prices climbed to unprecedented levels on Monday, driven by mounting concerns over global economic challenges exacerbated by the escalating trade conflict between China and the United States. A depreciating dollar further intensified the metal’s upward momentum.
Spot gold rose 1.7%, reaching $3,385.27 per ounce on Monday.
The U.S. President Donald Trump posted on his Truth Social platform earlier, stating that “he who has the gold makes the rules”
Meanwhile, the dollar index fell to its lowest in three years, making gold more appealing to investors holding other currencies. Market participants are factoring in increased geopolitical tensions due to U.S. tariff disputes and fears of stagflation, while robust central bank demand provides an additional boost to gold prices.
China’s central bank increased its gold reserves by 5 tonnes in March, marking five uninterrupted months of accumulation and bringing their total to an unprecedented 2,292 tonnes, which now account for 6.5% of China’s official reserve assets.
Goldman Sachs highlighted that in February, China purchased an estimated 50 tonnes of gold—ten times more than officially disclosed. Over the past three years, China’s gold acquisitions on the London OTC market have far exceeded declared figures, reflecting a strategic accumulation strategy.
President Donald Trump announced “reciprocal tariffs” targeting numerous countries on April 2. Although his administration has temporary suspended tariffs for select nations, it has intensified its trade offensive against China. Meanwhile, Trump launched a series of criticisms directed at Federal Reserve Chair Jerome Powell last Thursday, with his advisors considering the possibility of ousting Powell.
