Kainat Chinuala, vice president of commodity research at Kotak Securities, said gold prices on the Comex jumped to a record high as safe-haven demand rose amid escalating trade tensions between the US and China.
Precious metals stocks led the FTSE 100 index higher on Friday, with Endeavor Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) and Fresnello plc (LSE:FRES) leading the gainers, after gold reached a historic high.
The precious metal was trading at $3,219.93 an ounce by midday, driven by investors’ renewed appetite for safe-haven assets amid market turmoil caused by U.S. trade policy.
David Morrison, senior market analyst at Trade Nation, said: “Gold continues to attract buyers looking for safe havens amid a weaker dollar and a steady stream of competing headlines on tariffs.”
“But it’s now up more than 8 percent since Wednesday, so buyers should be careful.” Silver has not yet received the same level of attention as gold.
The Royal Mint also reported strong demand for physical gold, including coins and bullion, as investors look to hedge geopolitical and economic uncertainty.
Prices earlier exceeded $3,200 per ounce on April 2, but later fell due to profit-taking. On Thursday, the Trump administration imposed tariffs of up to 145 percent on Chinese goods, prompting China to impose retaliatory tariffs of up to 125 percent.
According to investment banking firm UBS, persistent concerns in financial markets, such as trade and economic uncertainty, stagflation fears, recession risks, and geopolitical tensions, are likely to continue to boost gold’s appeal.
Higher gold prices supported mining companies listed on the London Stock Exchange and boosted interest in precious metals. Endeavor rose 6% and Fresnilo 5.5%.
Gold Funds Record Top Inflows in 3 Years
Carsten Fritsch, commodities analyst at Commerzbank, noted that March data on gold ETFs, published by the World Gold Council this week, showed continued high buying appetite among investors of these funds.
Uncertainty over US tariffs drives investor demand
“According to the data, net inflows reached 92 tonnes last month. That’s close to February, when the strongest monthly inflows were recorded in nearly three years. The World Gold Council attributes this to higher prices and uncertainty caused by US tariff policy, among other factors. During the first quarter, ETF holdings in gold increased by 226 tonnes, the largest increase in three years.”
U.S.-listed ETFs recorded the largest investment flows. European and Asian ETFs also recorded investment flows. Gold ETF holdings reached their highest level since May 2023 at 3,445 tonnes. Thanks to record highs, assets under management in gold ETFs hit an all-time high, reaching $345.4 billion at the end of March.
The significant rise in the price of gold also contributed to the increase in value in the first quarter being the second strongest on record, and was only surpassed by the increase in the second quarter of 2020. Therefore, demand for ETFs was a key factor in the 19% rise in the price of gold in the first quarter.
In addition, gold futures on the Comex rose during Asian trading hours to reach a record high of $3,249.16 per ounce.
Kainat Chinuala, executive vice president of commodity research at Kotak Securities, said gold prices on the Comex jumped to a record high as safe-haven demand grew amid escalating trade tensions between the US and China.
Gold hits record jump in India due to demand
The Gold prices rose by 6,250 Indian rupees to an all-time high of 96,450 Indian rupees per 10 grams in the national capital on Friday, thanks to strong demand from local jewellery and retailers, according to the Sarava Indian Association. Analysts said the precious metal’s all-time highs in global markets, supported by strong safe-haven demand amid escalating U.S.-China trade tensions, boosted domestic prices.
On Wednesday, the yellow metal, with a purity of 99.9%, closed at 90,200 Indian rupees per 10 grams. After four days of sharp decline, the price of gold, with a purity of 99.5%, rose by 6,250 INR to an all-time high of 96,000 INR per 10 grams, compared to its previous close of INR 89,750 per 10 grams. Silver prices also rose sharply by INR 2,300 to INR 95,500 per kilogram, largely in line with global trends. The white metal had closed at 93,200 INR per kilogram in Previous Market Close.
Meanwhile, gold futures for June delivery rose by INR 1,703 to an all-time high of INR 93,736 per 10 grams on the multi-commodities exchange.
Jatin Trivedi, vice president of commodity and currency research analysts at LKP Securities, said: “Gold continued its record high… to an all-time high near 93,500 Indian rupees on the multi-commodities exchange, defying the rupee’s strength as geopolitical tensions escalate and tariff battles between the US and China escalate.”
In global markets, spot gold jumped to a new high of $3,237.39 per ounce. Subsequently, the price of XAU fell to USD$3,222.04 per ounce.
