It is more than $3000 per ounce.
Gold prices surged past the $3,400 mark on Monday morning, reaching a record high of $3,424.40 per ounce, as mounting economic and geopolitical uncertainties drove investors toward the safety of the precious metal.
The rally was fueled by a wave of new trade tariffs introduced by the Trump administration, including a 25% tariff on all imports from Mexico and Canada. For other trading partners, a standard 10% tariff has been enacted, along with reciprocal tariffs that reflect those nations’ own trade barriers against the U.S. Although these reciprocal tariffs have been temporarily paused for 90 days to facilitate renegotiations, there is skepticism about whether meaningful agreements will be reached in time to avoid their implementation.
Further destabilizing the financial landscape was White House economic adviser Kevin Hassett’s statement suggesting the administration is evaluating the potential dismissal of Federal Reserve Chairman Jerome Powell. This followed President Trump’s criticism that Powell was “playing politics” by not lowering interest rates. Any move to remove the head of the central bank would likely shake investor confidence and raise concerns about the independence of the Federal Reserve, potentially undermining the credibility of the U.S. dollar.
The U.S. dollar has been declining steadily since mid-January and currently sits at a three-year low. A weaker dollar makes gold more affordable for international buyers, boosting demand and driving up prices. By 9:45 a.m. EDT, spot gold had climbed to $3,418 per ounce—an increase of 2.71% on the day.
While gold continued its ascent, fears of a global trade war have weighed heavily on crude oil. Since the announcement of reciprocal tariffs on April 2, gold futures have jumped over 8%, whereas Brent crude futures have dropped nearly 12%. On Monday morning, Brent crude was trading at $66.24 per barrel, down 2.53%, amid concerns of increasing supply.
In response to the surge in gold prices, UBS raised its target for the metal. In an April 11 note, the firm described the situation as a “perfect storm” involving inflation fears, global tensions, and uncertainty over interest rates—all of which are pushing investors toward gold. UBS also pointed to a more sustained shift in gold investment patterns, citing China’s move to permit insurance funds to invest in gold and central banks increasing their gold reserves. UBS now forecasts gold prices will reach $3,500 per ounce and recommends a 5% allocation in gold for balanced USD portfolios.
However, UBS cautioned that this upward trend could reverse if geopolitical tensions ease, global trade relations stabilize, or the U.S. economic outlook significantly improves.
Yvonne Blaszczyk, CEO of the BMG Group, has an even more optimistic outlook, predicting gold could hit $4,000 per ounce by the end of the year. She emphasized gold’s resilience amid financial and geopolitical turmoil and noted that central banks continue to accumulate the metal—an indicator of long-term confidence in its value.
Investor interest has also been reflected in exchange-traded funds (ETFs). According to the World Gold Council, gold-backed ETFs saw global inflows totaling $8.6 billion in March, with North America accounting for $6.5 billion. The Council attributed the rising interest to robust price momentum, uncertainty from tariffs, a weakening dollar, and concerns about market liquidity and economic growth—all of which are driving investors to seek out safe-haven assets like gold.
