Gold prices notched a new intraday high above $3,500 per troy ounce, extending a powerful rally that has captivated global markets. The most actively traded futures briefly breached the psychological threshold before easing slightly, though still on course to close at a fresh record for the third consecutive session.
The precious metal has gained more than 1% daily over the past three sessions, as investors continue to abandon equities, U.S. government bonds, and the dollar. The rush into gold underscores mounting concerns over geopolitical and economic instability, particularly following President Trump’s ongoing tariff threats and his recent criticisms of the Federal Reserve Chair.
Long viewed as a haven asset, gold appears to be regaining its traditional safe-haven appeal. Analysts also point to foreign central banks steadily diversifying their reserves away from U.S. Treasuries as another key driver of demand.
“Physical demand is especially strong across Asia, while private investors in Europe have also ramped up purchases,” noted Alexander Zumpfe, a trader at German refinery Heraeus. He projects that prices may continue to rise, potentially testing the $3,600 mark.
However, market participants caution that such sharp rallies often contain the seeds of their own reversal. Rising prices tend to incentivize increased supply, including scrap and recycled gold, which could temper further gains.
