Gold hits fresh record as trade war, Fed chief Powell fire up haven demand
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Gold has climbed almost 28 per cent in 2025 as the escalating trade war creates anxiety over a possible global recession.
PHOTO: BLOOMBERG
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Sydney - Gold hit another high on April 17 as warnings from Federal Reserve chief Jerome Powell about the impact of the trade war fuelled volatility on Wall Street, leading to sharp declines in stocks and the US dollar.
Bullion gained as much as 0.4 per cent to US$3,357.78 an ounce, after adding 3.5 per cent on April 16 in its biggest one-day gain since March 2023.
The US dollar fell to a fresh six-month low as traders were whiplashed again by a slew of tariff headlines, while Mr Powell quelled hopes that the Fed would act quickly to soothe investors, highlighting the unpredictability of tariff announcements from Washington.
The precious metal has climbed almost 28 per cent in 2025 – outpacing the 27 per cent gain it notched in 2024 – as the escalating trade war creates anxiety over a possible global recession. Meanwhile, the Trump administration is preparing to pressure nations to curb trade with China in negotiations over US tariffs.
“A combination of heightened uncertainty around tariffs, an anticipated slowdown in economic growth, inflation fears, and increasing prospects of lower interest rates set a perfect backdrop for the precious metal to record further gains,” ANZ Research analysts Brian Martin and Daniel Hynes said in a note.
Gold was up 0.3 per cent at US$3,351.79 an ounce at 6.57am in Singapore. The Bloomberg Dollar Spot Index was little changed after dropping 0.7 per cent on April 16. Silver, platinum and palladium also rose. BLOOMBERG
