Published Mon, Apr 21, 2025 · 09:40 AM
[BENGALURU] Gold touched a record high on Monday (Apr 21) as the US dollar sank to a three-year low and trade war concerns between the United States and key trading partners stirred recession fears, making investors lean towards the safe-haven asset.
Spot gold advanced 1 per cent to US$3,361.53 an ounce as at 0037 GMT. US gold futures firmed 1.4 per cent to US$3,375.90.
The US dollar index hit a three-year low, making gold more attractive for other currency holders.
On Sunday, a Boeing jet intended for use by a Chinese airline landed back at the plane maker’s US production hub, a victim of the tit-for-tat bilateral tariffs launched by US President Donald Trump in his global trade offensive.
Last week, Trump ordered a probe into the potential new tariffs on all US critical minerals imports, a major escalation in his dispute with global trade partners and an attempt to pressure industry leader China.
Gold, traditionally seen as a hedge against political and economic uncertainties and inflation, has risen more than 27 per cent year-to-date.
Meanwhile, White House economic adviser Kevin Hassett said on Friday Trump and his team were studying if they could fire Federal Reserve chair Jerome Powell, a sign that such a move, a matter of great consequence for the central bank’s independence and global markets, is still an option.
The demand for physical gold was tepid in India last week as a blistering price rally curbed purchases, while premiums held firm in top consumer China.
Spot silver added 0.1 per cent to US$32.63 an ounce, platinum gained 0.2 per cent to US$969.20, while palladium fell 0.3 per cent to US$959.20. REUTERS
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