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Gold market rallies hitting record high on weaker dollar

Published: 17 Apr. 2025, 13:54 Updated: 17 Apr. 2025, 14:14

A Korea Gold Exchange employee sorts gold bars at the agency's headquarters in Jongno District, central Seoul, on April 14. [YONHAP]

Gold prices spiked to a fresh all-time high on Wednesday as investors sought safe-haven assets amid growing uncertainty over U.S. tariff policies and escalating global trade tensions.

Spot gold rose 3.61 percent to $3,338.43 per ounce as of 2:45 p.m. Eastern Standard Time (EST) on Wednesday, compared to the previous close, according to Reuters.

Earlier in the day, prices briefly touched $3,350, setting a new all-time high.

Gold futures also climbed. June delivery contracts on the New York Mercantile Exchange settled at $3,355.10 per ounce.

Persistent tit-for-tat tariff threats between Washington and Beijing have fueled demand for safe assets, while a weakening dollar added further momentum to the gold rally.

A weaker dollar generally supports gold prices, as it makes the dollar-denominated metal more attractive to holders of other currencies.

The ICE U.S. Dollar Index, which tracks the dollar against six major currencies including the euro and yen, dropped 0.82 percent to 99.40 around 3 p.m. EST.

The index, based on a benchmark value of 100, signals lower dollar preference as the figure declines.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.

BY JEONG JAE-HONG [[email protected]]