Gold Reaches New Peak as Tariff Concerns Shake Markets

Gold Prices Reach New High as Investors Flee to Safety

Gold prices hit a record high on 31 March 2025 as fears over US tariffs shook global markets. Spot gold rose 1.2% to $3,122.65 per ounce, while futures reached $3,153.10. Traders rushed into safe-haven assets, worried about aggressive trade actions from the US.

President Donald Trump announced new reciprocal tariffs would apply to “all countries.” These levies are set to begin this week, with tariffs on car imports taking effect Thursday. The move caused widespread uncertainty and boosted demand for gold.

“Markets’ anxiety levels have been ramping up ahead of the reciprocal US tariff announcements, which is keeping gold in high demand as a defensive play,” said Tim Waterer, Chief Market Analyst at KCM Trade.

Why Gold Keeps Climbing

Gold has already jumped 18% in 2025. This year alone, it has set 16 new all-time highs. Investors are using gold to hedge against inflation, economic slowdowns, and rising geopolitical risks.

Several top banks have updated their forecasts:

• Goldman Sachs now predicts $3,300 per ounce by year-end.

• Bank of America expects $3,063 in 2025, with a rise to $3,350 in 2026.

• UBS has also revised its gold outlook upward.

“Gold’s appeal as a safe haven and inflation hedge has strengthened. Ongoing trade friction and global uncertainty support a positive outlook,” said OCBC analysts.

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Pound Edges Higher as the Dollar Weakens

The British pound gained 0.2% against the dollar, reaching $1.2967. It also rose to 1.1972 against the euro. These gains followed a broad sell-off in the US dollar.

The Dollar Index, which tracks the greenback against other major currencies, dropped 3.5% this month. At present, it stands at 103.86.

Analysts point to growing fears of recession in the US. Tariffs could slow growth and make it harder for the Federal Reserve to cut interest rates.

“Recession risks have become elevated – to a 40% probability – on concerns that aggressive US policies hit business and household sentiment,” said JP Morgan’s Bruce Kasman.

The weaker dollar has made room for sterling to climb, and further gains may lie ahead if US policy remains aggressive.

Oil Prices Ease After Three Weeks of Gains

Brent crude dipped 0.3% to $72.57 per barrel. West Texas Intermediate (WTI) fell 0.2%, trading at $69.25. Despite earlier momentum, oil prices slipped as traders balanced tariff threats with new supply developments.

Trump warned that he could impose secondary sanctions on buyers of Russian oil. He also threatened military action against Iran unless a new nuclear deal is reached.

UBS analyst Giovanni Staunovo noted that traders are watching these threats closely, even though no immediate action is expected.

Meanwhile, China’s state-owned oil giant CNOOC discovered over 100 million tonnes of reserves in the South China Sea. The new oilfield lies near Shenzhen in undisputed waters. While it could boost China’s supply, full extraction may take time.

What This Means for Traders

Gold’s momentum, the pound’s resilience, and oil’s pullback all reflect growing market anxiety. For traders, these moves signal opportunity—but also demand strategy.

At Traders Oracle, we offer in-depth educational articles and free eBooks to help you navigate markets like these. Whether you’re trading gold, currencies, or oil, our resources can guide your next move.

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