Gold Price Soars Past 3300 as Global Trade Tensions Push Investors to Safe Havens

The precious metal gold has surged beyond $3,300 per troy ounce for the first time, as mounting concerns over global trade disputes and a weakening dollar drive investors towards safe-haven assets. The commodity experienced a remarkable rise of $107.90, representing a 3.4 per cent increase to $3,326.60 per troy ounce—marking its most substantial percentage gain since April 2020.

The impressive rally has been fuelled by President Trump’s recent announcement of sweeping global trade tariffs, which has contributed to a cumulative increase of nearly $200 an ounce, equivalent to a 6 per cent gain. The US dollar’s continued decline has reached its lowest point against a basket of currencies since April 2022, making the precious metal more attractive to international buyers.

British-listed gold mining companies have benefited significantly from the price surge, with Endeavour Mining and Fresnillo leading the FTSE 100 gains, rising 6.4 per cent and 2.2 per cent respectively. The precious metal’s appeal has been amplified by its inherent value as a finite resource, unlike currencies which can be printed at will.

Central banks have intensified their gold purchasing activities, whilst investors anticipate further interest rate reductions from major global central banks. The reduced interest rates diminish the opportunity cost of holding gold, despite its non-yield-bearing nature.

The latest price surge coincides with Trump’s threats to impose tariffs on all critical mineral imports, an industry where China maintains significant control. The FTSE 100 continued its positive momentum for a fifth consecutive session, adding 26.48 points to reach 8,275.60, whilst the domestically focused FTSE 250 experienced a marginal decline of 2.13 points to 19,265.81.