HTFX Insight: Gold Prices Climb to New Heights Near $3,500 as Market Uncertainty Deepens

 

Gold prices soared to unprecedented levels in early Asian trading on Tuesday, driven by rising geopolitical tensions and renewed concerns over U.S. monetary policy. Spot gold rose by 1.7% to $3,482.76 per ounce, while futures for June delivery gained 1.9% to reach $3,491.20—both setting fresh all-time highs.

This marks the third consecutive session of record-breaking gains for gold, following a surge of more than 3% on Monday. The most actively traded U.S. gold futures contract settled at $3,425.30, before extending gains in after-hours trading to touch $3,455.90.

 

 

 

Safe-Haven Demand Strengthens

Investors are increasingly turning to gold as a haven amid mounting instability. Ongoing friction in U.S.-China trade relations, combined with growing concerns over President Donald Trump’s intentions to reshape the Federal Reserve, have added layers of uncertainty to the global outlook.

The market was particularly rattled by speculation that President Trump may seek to replace Fed Chairman Jerome Powell, a move that would challenge the institution’s traditional independence. Analysts warn this could trigger a broader loss of confidence in U.S. monetary policy and accelerate the flow of capital into non-dollar assets, including gold.

“The credibility of the Fed is vital to market stability. Any perception of political interference risks shaking investor trust in the dollar,” noted Christopher Wong, a strategist at OCBC Bank.

Central Bank Buying and ETF Inflows Fuel Momentum

Gold has risen more than $700—an increase of 27%—since the beginning of 2025. Beyond geopolitical factors, the rally has been supported by strong institutional demand. Gold-backed ETFs have reported 12 consecutive weeks of inflows, marking the longest sustained increase since 2022. Central banks around the world have also continued to boost their gold holdings, reinforcing the bullish outlook for the metal.

Analysts point out that unlike historical gold rallies—such as the 1980 spike linked to the Iranian Revolution and oil crisis—the current uptrend appears more deeply rooted. “This time, the erosion of international cooperation has created persistent pressure, keeping gold prices elevated,” explained HSBC analyst James Steel.

Navigating the Market with HTFX

As volatility becomes a defining feature of today’s markets, gold remains a preferred asset for hedging and portfolio diversification. At HTFX, we offer traders seamless access to gold markets through advanced MT4/MT5 platforms, complemented by real-time analysis and multilingual professional support.

With the global macroeconomic landscape evolving rapidly, HTFX continues to empower clients with the tools and insights they need to stay ahead in the precious metals space.

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