Gold price surges past 3,400 USD amid rising global trade and geopolitical tensions

Gold soared to a new all-time high on Monday, breaching the 3,400 USD mark as mounting geopolitical tensions and renewed economic uncertainty drove investors toward safe-haven assets.

Spot gold climbed more than three percent during the session, reaching a record high of 3,436.01 USD in overnight Asian trading. The rally continued throughout the day, reflecting heightened demand driven by a weaker U.S. dollar, escalating U.S.-China trade tensions, and the breakdown of the ceasefire agreement between Russia and Ukraine.

In the U.S. market, the most active gold futures contract settled at 3,425.30 USD per ounce on Monday—representing a gain of over 100 USD, or more than three percent, from the previous close. The momentum carried into evening trade, with June delivery contracts reaching a fresh high of 3,455.90 USD per ounce.

The latest surge means gold has now exceeded its inflation-adjusted peak from 1980, when the metal briefly touched 850 USD per ounce amid the Iranian Revolution and a global oil crisis. In an earlier April commentary, HSBC analyst James Steel noted that while the issues driving the 1980 rally were resolved relatively swiftly, today’s environment—characterized by prolonged geopolitical instability and systemic economic pressures—may support higher prices for a more sustained period.

As global markets continue to grapple with uncertainty, gold appears poised to retain its status as a key store of value in volatile times.

Source: mining.com