(Kitco Commentary) - In what appears to be an extraordinary display of market resilience, gold prices are entering their ninth consecutive week of gains, consistently closing higher than their Monday opening bids.
This remarkable performance has propelled the precious metal to unprecedented heights, with April gold futures closing at a record $2,953.20 last week after advancing $52.50 (1.81%). The momentum continues unabated, with gold briefly touching an all-time intraday high of $2,973.40 last Thursday—a record that proved short-lived as investors pushed prices to an intraday high of $2974 today.
As of 4:45 PM EDT, the most active April gold futures contract stands at a new historic peak of $2,963.20, representing a daily gain of $10 (0.34%). This positions gold merely $37 away from the psychologically significant milestone of $3,000 per troy ounce, a threshold that seemed distant just months ago.
Trump Policy Shifts Catalyze 2025 Rally
Gold has appreciated approximately 12% since the beginning of 2025, with recent price action largely attributed to major trade policy changes implemented by U.S. President Donald Trump. The administration's aggressive stance on international trade has introduced significant market uncertainties, as the president has threatened tariffs on both allies and adversaries.
Initially, Trump set in motion tariff impositions targeting China, Mexico, and Canada. While negotiations with Mexico and Canada resulted in a 30-day postponement of these measures, the United States proceeded to implement a 10% tariff on Chinese imports. Furthermore, the president has signaled intentions to expand these protectionist policies, promising additional tariffs on steel and aluminum products from various exporting nations beginning in March.
Notably, today's gold price advances occurred despite modest dollar strength, with the U.S. dollar index gaining 0.07% to reach 106.62. This suggests that gold's current rally transcends traditional inverse correlations with the dollar, highlighting the depth of investor conviction in the metal's safe-haven properties.
Multiple Support Factors Drive Global Demand
The extraordinary price surge represents the culmination of a rally that began during the final week of December 2024. Since December 30, gold has accumulated an impressive gain exceeding $350 per ounce, demonstrating remarkable strength and sustainability in its upward trajectory.
This nine-week rally draws support from multiple factors and enjoys broad global participation. Market analysts attribute gold's unprecedented performance to investors actively allocating capital into safe-haven assets amid growing global uncertainties. This flight to safety has been amplified by robust central bank purchases of gold bullion, creating a powerful demand dynamic that has repeatedly pushed the metal to new record prices throughout 2025.
Geopolitical Tensions Underpin Safe-Haven Appeal
Market concerns intensified last week following controversial statements by President Trump regarding Ukrainian President Volodymyr Zelensky and Russia's ongoing invasion of Ukraine, which strained relationships between the United States and several European countries.
However, these tensions appeared to moderate today as President Trump expressed optimism that Russia's war in Ukraine might be approaching an endgame during his meeting with French President Emmanuel Macron on the third anniversary of the invasion.
Nevertheless, the broader geopolitical landscape remains fraught with uncertainties, continuing to fuel gold's appeal as a traditional store of value during turbulent times. As global investors navigate this complex environment, gold's nine-week winning streak stands as testimony to its enduring status as the ultimate safe-haven asset.
With the $3,000 milestone now within striking distance, market participants worldwide are closely monitoring whether this extraordinary rally will extend into a ninth consecutive week of gains, taking gold prices to new records in the process.
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Wishing you, as always good trading,
