Gold prices soared to new record levels Friday, extending a three-day rally fueled by intensifying U.S.-China trade tensions, a faltering dollar, and deepening demand for safe-haven assets. Spot gold climbed as much as 1.6% to $3,225.52 per ounce by midmorning in New York after hitting an intraday record of $3,244.10. U.S. gold futures for June delivery reached as high as $3,255.90, before settling slightly lower at $3,235.20.
The surge brings gold's three-day gain to nearly 8%, with investors seeking stability amid turbulent equity markets, volatile Treasury yields, and renewed geopolitical friction. "Gold is the best place to be in the market now," said Liu Yuxuan, a Shanghai-based precious metals researcher, in a note to Bloomberg. "The unprecedented trade tension has deepened the distrust of the U.S. dollar, intensifying the demand for other safety assets."
China's decision to raise tariffs on U.S. imports to 125% added momentum to the rally. The retaliatory move escalated the ongoing trade war, now marked by mutual tariffs well above 100%. "The U.S. and China are going to economic war-and everyone will suffer," read a Dow Jones Newswires headline Friday, as market participants braced for further fallout.
The U.S. dollar index fell to its lowest level in three years, compounding investor concerns over the broader macroeconomic outlook. "The stock-market meltdown that accompanied President Trump's intensifying trade war in recent weeks was unsettling enough," wrote Wall Street Journal columnist Greg Ip. "The fall in the U.S. dollar and rise in bond yields that went with it have been truly ominous."
Technical analysts say gold remains in a strong bullish position. "A minor correction wouldn't surprise, but the path forward is up and away as CPI and PPI give the Fed more room to cut and will keep downward pressure on the dollar," said Tai Wong, an independent metals trader, in a note to Reuters.
June gold futures face their next resistance at $3,275.00, with technical support at $3,200.00 and $3,160.00. "Bulls' next upside price objective is to produce a close above solid resistance at $3,300.00," analysts at Wyckoff's Market Rating noted Friday, assigning gold a near-term market strength rating of 9.0 out of 10.
In related markets, silver also posted strong gains, with May futures rising $0.691 to $31.45. Technical indicators suggest bulls have reasserted control, with resistance seen at $31.75 and $32.00, and support at $30.865 and $30.51. Wyckoff analysts rated silver at 6.0, suggesting a near-term floor may be forming.
Investors are also watching the U.S. Treasury market closely, with the 10-year yield holding at 4.403%. Concerns over a potentially destabilized Treasury market prompted some analysts to warn of broader financial contagion. "As far as the markets are concerned, it's all about tariffs," said David Morrison of Trade Nation in an email dispatch. "The danger is that something is announced, whether good or bad, over a weekend, thereby forcing a dramatic reaction as markets reopen on a Sunday evening."
