Gold Prices Hit All-Time High as US Tariff Threats Roil Markets

Global gold prices reach unprecedented levels as US tariff threats and trade tensions stoke investor uncertainty

 

Global gold prices have rocketed to record highs, climbing over 27% since the start of the year, as US tariff policies and escalating trade tensions fuel significant investor uncertainty.

 

The precious metal's relentless ascent continued after the Songkran holiday, reaching a new all-time peak of $3,357.58 per ounce in early trading today.

 

This surge has also propelled the price of 96.5% pure Thai gold bullion to a record 52,550 baht, although some short-term profit-taking has been observed.

 

The latest price spike comes in the wake of US President Donald Trump's discussions with Japan's Minister for Economic Revitalization, Ryosei Akazawa, regarding potential tariff measures.

 

While Trump indicated "very good progress" in these talks, representatives from several other Asian nations, including Thailand, India, Pakistan, and Indonesia, have also been engaged in trade negotiations in Washington D.C.

 

Adding to the market jitters, at the end of last week, Trump expressed optimism that the United States and the European Union could reach a trade agreement within a 90-day window following a meeting with Italian Prime Minister Giorgia Meloni. 

 

The question now remains whether gold's upward trajectory can be sustained in this climate.
  

Tipa Nawawattanasub, YLG Bullion and Futures CEO, anticipates that any near-term corrections in gold prices will be limited.

 

She argues that the potential imposition of US tariffs, which risks igniting a full-blown trade war with China, poses a significant threat to the global economy, bolstering gold's safe-haven appeal.

 

YLG suggests that if global gold prices hold above the $3,232 per ounce mark (equivalent to 51,000 baht for Thai bullion), the short-term outlook remains bullish.

 

Holding above the $3,285-$3,300 per ounce range (51,750-52,000 baht for bullion) would indicate a consolidation before a further push towards the all-time high resistance levels of $3,357-$3,377 per ounce (52,550-53,200 baht for bullion).

 



 

However, a break below $3,232 per ounce (51,000 baht for bullion) could trigger a deeper correction, which YLG views as a buying opportunity for medium to long-term investors, with a long-term support range identified at $2,956-$2,989 per ounce (46,550-47,000 baht for bullion).

 

Following any medium-term consolidation, YLG forecasts a further price rise, targeting $3,450-$3,500 per ounce (54,350-55,150 baht for bullion) by year-end.
  

Kritcharat Hirunyasiri, chairman of the MTS Gold Mae Thong Suk Group, also highlighted the continued upward momentum in global gold prices, which recently breached the $3,300 per ounce level to reach a new peak of $3,357 per ounce.

 

He believes this rally reflects gold's evolving status as a long-term safe-haven asset amid escalating global economic and political uncertainty. The ongoing tensions between the US and China remain a primary driver impacting global financial markets.

 

China's recent retaliatory move to impose tariffs of up to 125% on certain US imports further underscores the strained relationship.

 

With trade negotiations between the two economic giants showing little sign of an imminent breakthrough, gold's appeal as a hedge against instability is likely to persist.

 

While the US Federal Reserve maintains a cautious monetary policy stance, the overall outlook for gold remains supported by its safe-haven characteristics.

 

MTS Gold anticipates further upward movement if the trade disputes continue, with a key support level for global gold at $3,300 per ounce. Technically, gold remains in a clear uptrend, consistently hitting new highs.

 

Investors are advised to be wary of profit-taking and consider buying on price dips, taking profits incrementally.

 

The overall technical picture currently shows no signs of a trend reversal, with short-term support between $3,200-$3,280 and resistance in the $3,380-$3,400 range.

 

Similarly, despite a slight strengthening of the Thai baht, domestic gold prices have also reached record levels, easily surpassing 50,000 baht to reach 51,600 baht for bullion.

 

MTS Gold anticipates further gains in the short term, with support at 51,500-52,000 baht and resistance at 52,600-53,000 baht, while medium to long-term targets remain in the 54,000-55,000 baht range.

(2025/04/21-00:00)