Gold prices have reached new highs as the ongoing trade war initiated by the United States bolsters demand for safe-haven assets. Upcoming data releases are expected to highlight early signs of global economic damage. With the dollar weakening, spot gold prices surged past $3,370 per ounce.
The International Monetary Fund (IMF) is set to lower its growth forecast in its latest predictions, while the Purchasing Managers' Index (PMI) will soon reveal the state of economic activity since the imposition of tariffs by the Trump administration. The trade conflict has disrupted global markets, reduced demand for risk assets, and accelerated the shift towards safer investments.
This year, gold prices have consistently hit new records, with gold exchange-traded funds (ETFs) experiencing 12 consecutive weeks of growth, marking the longest streak since 2022. Central banks worldwide have been increasing their gold reserves, further supporting global demand.
Gold prices rose by as much as 1.3% to $3,370.56 per ounce before settling at $3,367.67 per ounce. The spot dollar index fell by 0.5%. Meanwhile, silver prices increased, platinum remained steady, and palladium prices declined.
