Gold prices rise above 3,100 USD to reach a new record high. Precious metals futures and stocks rise, silver prices remain elevated with only essential buying. As the April 2 date for the implementation of reciprocal tariffs by the United States approaches, market concerns about global trade conflicts triggered by the US tariff plan are rekindling, notably by fueling safe-haven sentiment and boosting the performance of precious metals.
Factors Contributing to the Rising Gold Price
Political and Trade Uncertainties: Rising tensions surrounding the conflict in Ukraine and concerns about the reciprocal tariffs announced by Donald Trump have reinforced gold’s status as a safe haven.
Central Bank Purchases: Central banks have increased their gold reserves, supporting demand and contributing to higher prices.
Uncertain Economic Outlook: Inflation fears and uncertainties over the US Federal Reserve’s monetary policy have also played a role in this trend.
Gold prices have just reached a new all-time high, surpassing 3,100 USD. This record is set at 3,127.92 USD per ounce on March 31, 2025. Analysts predict that gold could continue to rise, with potential price forecasts of 3,350 USD per ounce in 2026. However, a reduction in tensions could slow this rise.
The Main Factors Influencing Gold Price Rises
Inflation Rates and Interest Rates
When inflation rises, investors turn to gold as a safe haven to protect their wealth.
Low interest rates make other investments less attractive, prompting investors to turn to gold.
Demand and Supply
- Increased demand for physical gold, particularly from investors and central banks, pushes prices upward.
- Mining production and the recycling of existing gold influence supply, but high production costs can maintain price pressure.
Currency Fluctuations
Gold is often purchased in dollars, so a weaker US dollar makes gold more affordable for international buyers, increasing demand and price.
How Do Technological Applications Influence Gold Demand?
Technological applications influence gold demand in several ways.
Uses in the Electronics Industry
Gold is an excellent conductor of electricity and resists corrosion well, making it essential for printed circuit boards, connectors, and electrical contacts in smartphones, computers, and other electronic devices. This growing demand for gold in electronics is contributing to its price.
Green Technologies and Renewable Energy
Solar panels use gold to improve their efficiency, creating additional demand in the renewable energy sector. This growing demand for green technologies is also supporting the price of gold.
Medical Equipment
Gold is used in some medical implants and diagnostic equipment due to its biocompatible and conductive properties. This medical use adds to the overall demand for gold.
Impact on Supply and Demand
While technologies can increase the demand for gold, they can also influence supply by improving extraction and recycling methods. Digital Technologies and Investments
Digital platforms facilitate access to information about the gold market, which can attract more investors and influence demand. However, digital currencies can also reduce demand for gold by offering an investment alternative.
