Gold hits record high above $3,380

April 21, 2025 (MLN): Gold prices surged by more than 1% on Monday, crossing the $3,380 per ounce mark, setting a new record high.

The surge comes as investors flock to gold amid escalating global trade tensions and a weakening U.S. dollar, driven by safe-haven demand.

Analysts predict that the precious metal could continue to rise, with some projecting a short-term target of $3,500 an ounce.

Gold touched above $3,380 per ounce on Monday, as shown on the chart, marking a new record high.

The renewed interest in gold follows a notable statement from former U.S. President Donald Trump, who reinforced the value of gold in a post on his Truth Social platform.

Trump’s message on April 20 read, The Golden Rule Of Negotiating And Success: He Who Has the Gold Makes the Rules.

This statement echoes a similar sentiment he shared in a 2013 post on X (formerly Twitter), where he highlighted the importance of gold in negotiations.

In the decade since Trump’s original tweet, countries like Russia, China, and Turkey have significantly increased their gold reserves.

Russia’s reserves grew from 1,035 tons in 2013 to 2,333 tons in 2023, while China’s reserves rose from 1,054 tons to 2,235 tons during the same period.

Turkey, which increased its reserves from 116 tons to 540 tons, now holds the third position in global gold holdings.

Central banks have been accumulating gold at record levels, with the U.S. leading the world with 8,134 tons of gold reserves as of December 2024, followed by Germany, China, and India.

This increase in central bank gold purchases reflects growing concerns about the stability of fiat currencies and the need for financial security during uncertain times.

The gold price has climbed 41% over the past year, as geopolitical and financial market instability has made gold an attractive asset.

As gold continues to rally, analysts suggest that the next potential milestone could be $3,500 per ounce, or approximately Rs1,00,000 for 10 grams of 24-carat gold in India.

However, caution is advised as the metal has seen rapid price increases, and a price correction may follow if it falls below the $3,300 mark.

Gold’s performance has historically been strong during periods of global equity market stress, such as the 2008 financial crisis and the COVID-19 pandemic.

The ongoing U.S.-China tariff war and potential volatility in U.S. markets are fueling gold’s bullish outlook.

With the S&P 500 dropping nearly 20% from recent highs, gold has already risen more than 25%, further cementing its role as a safe-haven asset during times of economic uncertainty.

As the global economic landscape continues to evolve, gold remains a critical asset for investors seeking security and stability in turbulent times.

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