Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Gold price hits record high as trade war and weak dollar drive safe-haven demand

by April 11, 2025
April 11, 2025
Gold price hits record high as trade war and weak dollar drive safe-haven demand

The price of gold soared to an all-time high on Friday, reaching $3,223.72 per ounce, as investors rushed to the safe-haven asset amid rising geopolitical tensions and a sharp escalation in the trade war between the US and China.

China raised tariffs on American imports to 125% in retaliation for President Trump’s decision to increase duties on Chinese goods to 145%, fuelling concerns about the stability of global trade and rattling markets.

Adding to the rally, the US dollar weakened to a two-year low against a basket of major currencies, raising further doubts over America’s role as a stabilising force in the global financial system. Because gold is priced in dollars, a weaker greenback typically boosts demand by making the metal cheaper for overseas buyers.

The surge in gold prices reflects a confluence of global pressures. Beyond trade tensions, markets have been driven by:
• Ongoing central bank purchases of gold
• Expectations of rate cuts by the US Federal Reserve
• Geopolitical instability in regions such as the Middle East and Europe

Gold has traditionally been regarded as a safe-haven asset — a store of value during periods of economic or political uncertainty. Unlike fiat currencies, which can be printed, gold is finite, giving it intrinsic value and appeal during times of volatility.

“Gold is proving its worth once again as the ultimate hedge during times of market turmoil and currency devaluation,” said one commodities analyst.

The rally in gold also reflects changing sentiment over US monetary policy. Inflation data released on Thursday showed an unexpected drop in consumer prices in March, fuelling speculation that the Federal Reserve could begin cutting interest rates as early as June.

Markets are now pricing in the possibility of a full percentage point in rate cuts by the end of 2025.

Lower interest rates make gold more attractive to investors as it reduces the opportunity cost of holding non-yielding assets like precious metals.

Despite its appeal, gold is not without drawbacks. Unlike equities or bonds, gold doesn’t generate income — it pays no dividends or interest. And while it has a long-term track record of preserving wealth, the price can be volatile in the short term, especially as investor sentiment and macroeconomic conditions shift.

Nevertheless, with markets on edge, the dollar under pressure, and political tensions on the rise, gold continues to shine as a preferred hedge in uncertain times.

Read more:
Gold price hits record high as trade war and weak dollar drive safe-haven demand

0
FacebookTwitterGoogle +Pinterest
previous post
This Report Might Self Destruct in 5 Days
next post
NRCC launches ad campaign targeting dozens of vulnerable Dems who voted against key Trump proposal

You may also like

Starling Bank fined £29m for ‘shockingly lax’ financial...

October 4, 2024

New CBI boss Rain Newton Smith doesn’t take...

May 12, 2023

Forecasting vs Budgeting: How Financial Models Differ in...

October 11, 2024

New London Grand Prix stars in docks regeneration...

March 14, 2023

DMARC: The ultimate guide to protecting your email...

April 6, 2023

UK firms asked to disclose China investments as...

August 22, 2023

Overseas buyers line up to hear pitches from...

April 28, 2025

Business lending to drop at fastest rate in...

February 6, 2023

Throwing more money at HMRC won’t fix Britain’s...

March 26, 2025

Thomas Peter Maletta Discusses The Trial And Error...

March 14, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Friday Feature: Solstice Hybrid Academy

      May 30, 2025
    • I’m a physician and I’m worried that our health agencies are facing increasing chaos

      May 30, 2025
    • Inside the late-night drama that led to Trump’s tax bill passing by 1 vote

      May 30, 2025
    • Alleged attempt to impersonate White House chief of staff under federal investigation

      May 30, 2025
    • Record Student Visa Denials Before Trump: 41 Percent Rejected in 2024

      May 30, 2025
    • Netflix accused of copying show idea by ‘Queen of bling’ Celia Sawyer

      May 30, 2025

    Categories

    • Business (8,104)
    • Investing (1,998)
    • Politics (15,437)
    • Stocks (3,115)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved