On April 11, the price of gold exceeded the mark of $3,200 per ounce amid the weakening of the dollar and the escalation of the trade war. During the current week, the price of ingots increased by approximately 5%, informs Reuters.
On April 11, the price of gold broke the level of $3,200 per ounce for the first time, as a result of the depreciation of the US currency and the escalation of the trade war, which forced investors to turn to more stable instruments. Spot gold rose 0.6% to $3,192 an ounce, after hitting a record high of $3,219 during trading. U.S. gold futures rose nearly 2% to $3,237 an ounce.
Analysts predict a further increase in the price of gold — up to $3,500. Along with customs barriers, rising demand from central banks, expectations of key rate cuts by the Federal Reserve, geopolitical tensions in Europe and the Middle East, and increased investment in gold-backed exchange-traded funds are weighing on the price of the metal.
Elsewhere, spot silver held steady at $31.2 an ounce, although it later rose 0.4% to $31.31. Platinum fell 0.2% to $936.55, but later rose 0.7% to $944.35. Palladium also added 0.7% to $914.55 and later added 1.9% to $925.43.
Data indicate an unexpected decline in the consumer price index in the US in March. Traders are also awaiting the producer prices report, which should clarify the future trajectory of the Federal Reserve’s monetary policy. Financial markets are currently pricing in the possibility that the Fed will resume rate cuts in June and could cut them by one percentage point by the end of 2025.
