Gold prices surged above $3,240 per ounce on Monday, as deepening trade tensions and falling bond yields fueled demand for safe-haven assets. The latest rally reflects a growing sense of unease in global markets, with investors increasingly seeking shelter from geopolitical and economic uncertainty.
Spot gold climbed to $3,243 in early trading, marking one of its strongest performances this year. The move comes as U.S.-China trade negotiations show signs of deterioration, stoking fears of a prolonged standoff that could weigh on global growth. Risk-off sentiment intensified across asset classes, boosting gold’s appeal as a store of value.
XAU/USD 1-D Chart as of April 15th, 2025 (Source: TradingView)
At the same time, U.S. Treasury yields continued to decline, with the 10-year yield falling to its lowest level in weeks. Lower yields reduce the opportunity cost of holding non-yielding assets like gold, making the metal more attractive to both institutional and retail investors.
The combination of geopolitical stress, softening economic indicators, and dovish central bank expectations has created a bullish environment for bullion. Markets are increasingly betting that the Federal Reserve could cut rates later this year, especially if trade disruptions start to show up more clearly in consumer and manufacturing data.
Central bank buying remains a strong undercurrent, particularly from emerging markets seeking to diversify reserves. This structural demand adds another layer of support, keeping gold prices elevated even when investor flows briefly slow.
With technical momentum building and sentiment firmly in favor of risk aversion, analysts see the potential for gold to test new highs, especially if trade negotiations deteriorate further or economic data disappoints. For now, the metal continues to benefit from a confluence of macro drivers that show no signs of easing.
