Gold Reaches New Heights as Trade Tensions Mount

As global markets react to escalating trade uncertainties, gold prices have soared to new all-time highs, marking a significant moment for investors seeking safe-haven assets. On Monday, 14 April 2025, the precious metal briefly surpassed $3,245 per ounce, reflecting increased volatility and investor caution amid renewed tariff friction between the United States and China.

Gold Price Rally: Safe Haven Surge Amid Tariff Turmoil

Gold has experienced a notable uptick in recent sessions, peaking at $3,245 before pulling back slightly. By midday, futures hovered around $3,244.70, while the spot price saw a marginal dip to $3,231.03 per ounce. This follows a robust 6% gain last week, attributed largely to a weakening US dollar and rising demand for economic hedges.

According to Chris Weston, Head of Research at Pepperstone Group, “Gold has clearly become the go-to asset in light of ongoing US dollar debates. It’s entered what can only be described as ‘beast mode.’”

The momentum in gold prices is largely supported by investor anxiety over global trade. Tensions heightened as the US administration imposed a fresh round of tariffs on Chinese imports, sparing some consumer electronics but keeping pressure on other sectors.

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Sterling Strengthens Against Dollar and Euro

Sterling made strong gains against both the US dollar and the euro, climbing 0.5% to $1.2852 and rising 0.3% to €1.1544 respectively. The surge follows news of the White House exempting certain electronic goods, such as smartphones and laptops, from the latest round of tariffs—signalling a slight de-escalation in the ongoing trade standoff.

This exemption helped soften the dollar’s position, with the US dollar index slipping to 99.36, its weakest level since April 2022.

However, further trade-related uncertainty looms, as the US President also announced new tariffs targeting semiconductor components. Although some sector-specific flexibilities may apply, the overall policy direction is increasing concerns over long-term economic resilience.

Oil Prices Stabilise Amid Diplomatic Hopes and Trade Worries

Crude oil prices edged higher, with Brent crude rising to $64.95 per barrel, while WTI crude reached $61.69. Despite lingering pressure from fears of reduced global demand, traders found optimism in reports of promising discussions between the US and Iran regarding nuclear negotiations.

These diplomatic talks—held in Oman and seen as the first serious engagement since 2022—offer a glimmer of hope for easing geopolitical tensions. Any breakthrough could significantly influence oil supply chains and market sentiment.

Meanwhile, Goldman Sachs forecasts Brent to average $63 for the rest of 2025, with a further decline to $58 in 2026. WTI is projected to follow suit, potentially dropping to $55 next year, as production from OPEC+ members continues to ramp up.

FTSE 100 Climbs Amid Global Uncertainty

Despite international instability, the FTSE 100 rose by nearly 2% to reach 8,119 points, suggesting investor confidence in UK equities remains relatively firm.

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