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Gold hits record high on weak dollar, trade war woes

Published: 21 Apr. 2025, 10:31 Updated: 21 Apr. 2025, 17:42

A view of a Krugerrand coin and gold bars kept in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, on Jan. 10. [REUTERS/YONHAP]

Gold touched a record high on Monday as the dollar sank to a three-year low and trade war concerns between the United States and key trading partners stirred recession fears, making investors lean toward the safe-haven asset.

Spot gold advanced 1 percent to $3,361.53 an ounce. U.S. gold futures firmed 1.4 percent to $3,375.90.

The dollar index hit a three-year low, making gold more attractive for other currency holders.

On Sunday, a Boeing jet intended for use by a Chinese airline landed back at the plane maker's U.S. production hub, a victim of the tit-for-tat bilateral tariffs launched by U.S. President Donald Trump in his global trade offensive.

Last week, Trump ordered a probe into the potential new tariffs on all U.S. critical minerals imports, a major escalation in his dispute with global trade partners and an attempt to pressure industry leader China.

Gold, traditionally seen as a hedge against political and economic uncertainties and inflation, has risen more than 27 percent year-to-date.

Meanwhile, White House economic adviser Kevin Hassett said on Friday Trump and his team were studying if they could fire Federal Reserve Chair Jerome Powell, a sign that such a move, a matter of great consequence for the central bank's independence and global markets, is still an option.

The demand for physical gold was tepid in India last week as a blistering price rally curbed purchases, while premiums held firm in top consumer China.

Spot silver added 0.1 percent to $32.63 an ounce, platinum gained 0.2 percent to $969.20, while palladium fell 0.3 percent to $959.20.

Reuters