Gold Prices Reach Record High Amid U.S.-China Trade Tensions and Weakening Dollar.
On April 21, 2025, gold prices soared to an unprecedented high, with spot gold peaking at $3,384 per ounce. This surge is attributed to escalating trade tensions between the United States and China, coupled with a weakening U.S. dollar, which has reached a three-year low. ​
The intensifying trade conflict, marked by the U.S. administration’s implementation of “reciprocal tariffs” on various countries, has heightened investor concerns over global economic stability. These developments have led to increased demand for gold as a safe-haven asset. ​
Analysts note that the declining dollar enhances gold’s appeal to investors holding other currencies, further propelling its price. Additionally, central banks, particularly in emerging markets, have been increasing their gold reserves as a hedge against currency volatility and geopolitical uncertainties.
Market strategists suggest that if current trends persist, gold prices could continue their upward trajectory, potentially reaching new milestones in the near future.
