Global trade uncertainty is driving up the price of gold as the main safe haven asset. Last week, the precious metal reached a new record high, consolidating above $3,200 per ounce. Between April 4 and 11, gold gained 6%, marking its biggest weekly jump since March 2020, according to Kitco News.
However, web portal experts note that determining gold’s fair value remains challenging at the moment. The global market situation is rather uncertain, and the number of reliable money-saving alternatives is decreasing. While the dollar, as the world's reserve currency, is declining, the US Treasury bond yields are rising. Under these circumstances, gold seems to be the best choice for traders, Kitco News suggests.
Naeem Aslam, chief investment officer at Zaye Capital Markets, highlights that the precious metal is overbought, but expresses confidence in further price gains amid the current volatility.
With unpredictable US trade policies and retaliation measures from countries affected by tariffs, gold will be in particular demand, according to Kitco News.