Gold prices are continuously hitting new highs due to a series of global uncertainties.

Few people expected that the world would face the risk of a full-blown trade war and a forecast of "stagflation" (economic stagnation combined with high inflation) from the US Federal Reserve (Fed).

President Donald Trump has declared April 2 as “Liberation Day,” the day he will announce retaliatory tariffs on several countries. America’s tough trade policies and the threat of World War III are spooking investors.

The current world situation is very tense, especially in the Middle East when the ceasefire agreement collapsed, plus the increasingly complicated situation between Russia and Ukraine. NATO warned that Russia would face "devastating" consequences if it attacked Poland or other member states.

These unprecedented geopolitical risks have sent investors looking for safe haven assets like gold, pushing the price to a record high above $3,100 an ounce.

Since Mr. Trump took office for a second term in January, the price of gold has increased by more than $400 in just the first 50 days, outperforming all other major asset classes such as the S&P 500 index, leading technology stocks, and even Bitcoin.

Currently, the price of gold futures for June delivery on the Comex floor has reached a new record of 3,117 USD/ounce, while the price of silver has also increased sharply, surpassing the important threshold of 35 USD/ounce.

One of the reasons for the sharp increase in gold prices is President Trump's announcement to impose tariffs on all cars imported into the US. Experts say this will have a serious impact on people's lives.

According to Yale University's forecast, Trump's tariffs could cost each American household an additional $2,000 per year due to higher prices.

In fact, over the past five years, inflation in the US has increased rapidly, with a total rate of more than 23%, the highest in more than 30 years. The Fed predicts that inflation will continue to increase, while economic growth slows down, indicating that the US economy is clearly entering a period of stagflation.

US consumer sentiment is at a low, with confidence about income, jobs and the economic situation falling to a 12-year low.

Credit rating agency Moody's also warned that the US public debt situation is becoming more serious, and the national financial strength has been declining continuously for many years.

American businesses are also losing confidence in the economic future due to President Trump’s controversial tax policies. About 60% of chief financial officers (CFOs) predict the US economy will fall into recession in the second half of this year. Notably, this pessimistic rate of CFOs has increased significantly since the trade war began.

Gold imports into the US are increasing sharply, as gold reserves in New York and the Comex floor continue to hit new highs, doubling compared to December 2024.

From a technical analysis perspective, gold prices have broken the important psychological level of $3,000/ounce and may be aiming for a target of $4,000/ounce in the near future.

However, rising gold prices too quickly could lead to temporary corrections. If gold prices fall below important support levels such as $3,000 or further below $2,800, the market will face the risk of a sharp correction.

Meanwhile, gold and silver stocks are also benefiting from the volatility in the U.S. stock market. Investors are selling technology stocks and moving money into precious metals mining stocks, which have been undervalued for years. This has created a good opportunity for small and mid-sized gold miners.

Silver prices have also started to rise sharply after nearly 4.5 years of stability below the $30 threshold, and are now heading towards $40-50/ounce this year.

Experts believe that 2025 will be the year when silver prices and small mining stocks explode after a long period of accumulation.

Overall, global geopolitical tensions, trade chaos due to US tax policy, and the risk of stagflation are creating a "perfect storm", continuing to push the price of gold and other precious metals higher in the coming time.

Source: https://baoquangnam.vn/gia-vang-dang-lien-tuc-lap-dinh-do-hang-loat-bat-on-toan-cau-3151685.html