Gold surges past US$3,200 for first time as recession anxiety mounts

CANBERRA – Gold jumped to a fresh record above US$3,200 an ounce as concerns about the impact of US tariffs on the global economy pushed investors to the safe haven.

Spot gold jumped over 1 per cent to US$3,214.92 an ounce, as at 4.01pm in Singapore, after hitting a record high of US$3,219.84 earlier in the session. Bullion is up over 5 per cent so far this week.

“Recession risks are mounting, bond yields are soaring, and the US dollar continues to weaken – all factors reinforcing gold’s role as a crisis hedge and inflation shield,” said Mr Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany.

Gold’s haven status has been underlined this week, with US President Donald Trump’s flip-flopping messaging on his tariff agenda sparking frantic sell-offs for US stocks, bonds and the dollar.

Risks and uncertainty remained even after his 90-day tariff pause on higher levies that hit dozens of trade partners, with duties on all Chinese imports now at least 145 per cent.

There is increasing scepticism that trade talks will be wrapped up in a timely manner, despite the White House’s National Economic Council director Kevin Hassett saying the US is “well advanced” in its discussions with economic partners.

Gold’s rally of more than a fifth in 2025 has also been boosted by hopes for more Federal Reserve monetary easing and central bank buying. On April 10, data showed underlying US inflation cooled broadly in March, with traders now pricing in expectations for three interest rate cuts in the remainder of the year, with a chance of a fourth. Lower rates typically benefit gold as it pays no interest.

“We remain quite positive for gold,” Mr Dominic Schnider, head of commodities and Asia-Pacific currencies at UBS Global Wealth Management, said on Bloomberg Television. “The next step is going to be, at some point, the Fed coming in – and that gives the next leg-up for gold.” BLOOMBERG, REUTERS