Gold prices climbed sharply on 9 April, rising nearly 2% as markets reacted to another round of tariff tensions out of Washington. With the U.S. dollar slipping under the weight of fresh trade salvos from the White House and President Trump once again targeting Chinese imports, gold quietly reclaimed its role as the market’s preferred safe haven.
Gold Regains $3,000 as Dollar Falters
Just days after brushing a four-week low, gold has moved decisively back into bullish territory. The catalyst? A softening U.S. dollar, under pressure from the latest round of tariff threats and political sabre-rattling. As the greenback slipped, gold became more affordable for overseas buyers. That gave the rally an extra assist.
Tim Waterer, Chief Market Analyst at KCM Trade, put it plainly: “The downward shift in the dollar on tariff worries effectively paved the way for gold to reclaim the $3,000 level.” In his view, the momentum hasn’t run its course. With investors growing increasingly twitchy about global growth and inflation that refuses to budge, Waterer sees a clear path toward fresh record highs.
Trump’s 104% Tariff Fuels Safe-Haven Rush
President Trump delivered the latest blow in the trade war, announcing fresh tariffs on Chinese imports, this time set at a punishing 104%. True to form, the White House framed it as a counterstrike, citing China’s retaliatory measures and alleged currency manipulation as justification. Beijing, unmoved, fired back with accusations of “blackmail” and vowed to “fight to the end.”
The tariffs took effect at 12:01 a.m. Eastern (0401 GMT), and financial markets didn’t hang about. For gold, the signal was unambiguous: more political heat means more safe-haven flow. As the risk of a drawn-out trade standoff grows, capital continues to seek shelter in gold.
Gold’s Surge Sparks Historical Comparisons
It’s not just the size of gold’s latest rally that has seasoned traders raising eyebrows. It’s the echoes of history running alongside it. Earlier this month, gold surged to a record high of $3,167.57, surpassing even the peaks seen during the 2020 pandemic. And for those who lived through the economic mayhem of the late 1970s, the parallels are hard to ignore.
Back then, it was oil shocks and the Iranian Revolution. Today, the headlines tell a different story: tariff battles, currency frictions, and a whiff of stagflation. The cast has changed, but the instinct to seek shelter in gold hasn’t.
ETF Demand Helps Power Gold’s Bull Run
Investors, both retail and institutional, have been piling into gold ETFs with the enthusiasm of a crowd that smells trouble. According to the World Gold Council, gold-backed funds took in 226.5 tonnes during the first quarter of 2025, marking the strongest quarterly inflow in three years. That translates to $21.1 billion, pushing total holdings to a record 3,445 tonnes by the end of March.
U.S.-listed ETFs led the charge with 133 tonnes, while their European counterparts followed with 54.8 tonnes. In other words, ETFs aren’t just along for the ride. They’re doing much of the heavy lifting in this rally.
What’s Next for Gold: Fed Caution in Focus
Markets are now watching two major catalysts: the Federal Reserve’s meeting minutes and fresh U.S. CPI data. Together, they’ll offer a clearer read on where the Fed stands on inflation, and how it plans to juggle persistent price pressures with an increasingly fragile global backdrop.
Kelvin Wong, Senior Market Analyst at OANDA, expects the Fed to stick with a cautious tone, “watching for inflationary resurgence over growth risks.” Historically, that sort of hesitation has tended to work in gold’s favour.
Final Word: Gold Shines in Uncertain Times
This isn’t your typical speculative scramble. Gold’s surge reflects a market navigating multiple pressures: rising geopolitical risk, murky central bank policy, and a dollar that’s starting to lose its shine. Add inflation anxiety and renewed institutional appetite, and the rally starts to look less like a fluke and more like a shift in sentiment.
In unpredictable markets, the reasoning hasn’t changed. When things unravel, gold tends to tighten its grip on investors’ attention.
