Gold price hits record $3,405 amid trade war escalation

By Al Mayadeen English
Source: Agencies
22 Apr 2025 15:03

Gold prices have surged to a record $3,405 as global trade tensions and Trump’s tariffs fueled investor demand for safe-haven assets.

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In this Nov. 8, 2006 file photo, gold bars are on display at the Gold exhibit in the American Museum of Natural History in New York. (AP)

The price of gold soared to a record high on Monday, reaching $3,405.19 per ounce, as global trade tensions intensified and investors flocked to safe-haven assets.

Driven by fears of further escalation in the US-China trade war, gold prices rose over 2.3% in a single day.

The new peak reflects growing market anxiety over the economic fallout from the latest round of tariffs imposed by the world’s two largest economies.

In addition to trade fears, central banks' recent moves to cut interest rates have fueled gold’s rise. The European Central Bank reduced rates by 25 basis points last week, contributing to the metal's upward momentum.

With uncertainty looming over global markets and further rate cuts anticipated, gold continues to serve as a refuge for investors seeking stability in turbulent times.

Wealthy Americans move money to Swiss banks

Meanwhile, amid rising political and economic instability in the United States, a growing number of wealthy Americans are moving money to Swiss banks in an effort to protect their assets and diversify away from the US dollar, NBC News reported.

Swiss financial institutions report a notable surge in interest from US clients who are seeking more stable and secure options abroad.

Financial experts point to increasing demand for offshore accounts as Americans look to “de-Americanize” their portfolios. Pierre Gabris, CEO of the Swiss advisory firm Alpen Partners International, said these movements tend to occur in waves. “When [former President Barack Obama] was elected, we saw a big wave. Then, COVID was another wave. Now tariffs are causing a new wave,” he explained.

According to Gabris, the motivations behind opening Swiss bank accounts for US clients vary widely. Many are reacting to what they perceive as a weakened US dollar, burdened by mounting national debt and fiscal volatility.