Gold prices soared to a record $3,193.80 per ounce on Thursday, marking a 3% increase from its opening price of $3,099.10. This surge follows U.S. President Trump’s announcement of a 90-day pause on many reciprocal tariffs, alongside a 145% tariff on Chinese goods.
Initially, the market reacted positively to the tariff pause, with the S&P 500 jumping nearly 10% on Wednesday to $5,456.90. However, the optimism was short-lived, as both the S&P 500 and Dow Jones Industrial Average fell after opening, reflecting ongoing concerns about the U.S.-China trade conflict.
Record Gold Price and Market Impact
Gold’s new high of $3,193.80 is 9.7% higher than its price just a month ago, when it opened at $2,910.10 on March 10. The previous high was $3,168.80, reached on April 2, 2025. Gold has been climbing steadily, driven by ongoing market uncertainty and rising fears of trade tensions.
Investing in Gold
Investing in gold can be an effective hedge against inflation and stock market volatility, but it requires careful consideration. Gold can be volatile, and its price has historically seen long periods of decline. Therefore, a long-term investment horizon is often recommended when using gold as a stabilizing asset or insurance against economic downturns.
A small gold position can help protect your portfolio during times of economic instability, though it’s important to remember that gold has underperformed stocks in the past. For those interested in investing in gold, understanding the risks and determining an appropriate allocation for your portfolio is essential.
Gold’s Strong Outlook
Analysts remain bullish on gold, with Goldman Sachs projecting an 8% rise in gold prices for 2025 after a massive 40% surge in 2024. With concerns about tariffs and their potential economic impact, gold’s price has continued to rise, surpassing earlier forecasts.
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