Gold Prices Surpass $3300 as Experts Predict Further Increases

In a significant financial development, the price of gold has reached a historic peak, exceeding $3300 per ounce for the first time. This surge follows recent actions by the U.S. government, including an investigation ordered by President Trump, which may signal a new escalation in the ongoing global trade tensions. As a result, investors are shifting their focus from equities to safer assets.

On the morning of April 16, 2025, gold prices briefly touched $3317, before settling at approximately $3305, marking a 2.3% increase from the previous day. This rise follows a prior record set just days earlier, reflecting growing investor concerns over market stability.

The announcement of a new inquiry into tariffs on essential minerals has further unsettled traders, with President Trump urging China to engage in trade discussions after Beijing halted orders for Boeing aircraft. Trump's administration has also tightened restrictions on the export of artificial intelligence chips to China, contributing to heightened market volatility.

Analysts note that gold has appreciated by over 20% this year alone, reaching several record highs. The intensifying trade conflicts are fueling fears of a potential global recession, prompting investors to seek refuge in safer investments. Ricardo Evangelista, an analyst from Activtrades, remarked that gold, alongside the Swiss franc, has emerged as a primary beneficiary in the flight to safety. Confidence in U.S. Treasury bonds has been shaken due to the current trade policies.

Additionally, the recent decline of the U.S. dollar has increased demand for gold, as the precious metal is typically traded in dollar denominations. A weaker dollar generally leads to heightened interest in gold purchases.

Leading financial institutions remain optimistic about gold's prospects in the coming quarters. Investors are bolstering their positions in gold-backed exchange-traded funds, and central banks continue to accumulate the metal. Goldman Sachs has forecasted that gold prices could rise to $4000 per ounce by mid-2026.

As geopolitical power struggles persist among major nations, the allure of gold as a safe haven appears set to continue, with expectations for prices to rise in the short to medium term.