Gold prices surged in early Wednesday trading, reaching an all-time high above $3,300. Alongside the Swiss franc, gold is emerging as one of the primary beneficiaries of the current flight to safety sweeping through the markets. Since 9 April — dubbed “Liberation Day” — the precious metal has gained approximately 11%, as investors, rattled by the escalating tariff chaos and growing fears of a recession triggered by the intensifying US-China trade war, continue to increase their exposure to bullion. Confidence in US assets is being further undermined by the unpredictable shifts in American trade policy — most recently illustrated by yesterday’s announcement of new restrictions on chip exports to China. This uncertainty weighs on risk-related assets such as tech stocks and reinforces demand for traditional safe havens like gold. Adding to this dynamic is a weakening US dollar, which has lost ground against other major currencies as investors pull back from dollar-denominated assets. Given the inverse price correlation between the two, this dollar softness is offering additional support to gold prices.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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