Gold prices rose 0.5% to $3,128.76 an ounce on Friday, extending gains after reaching a record $3,167.57 earlier in the week. The metal has attracted demand as investors sought safe-haven assets amid escalating global trade tensions.
China’s finance ministry announced retaliatory 34% tariffs on all U.S. goods, effective April 10, in response to the U.S. administration’s plan for a baseline 10% tariff on all imports, with higher rates for certain trading partners. The announcement has intensified market uncertainty and supported demand for bullion.
Analysts say that despite intermittent volatility, the outlook for gold remains constructive. Matt Simpson of City Index highlighted a firm support level near $3,080, while Nitesh Shah of WisdomTree suggested that prices could climb toward $3,600 by early 2026 if risk-off sentiment persists and central bank buying continues.
Physical demand patterns vary by region. Purchases in China have strengthened as consumers and investors buy bullion for both investment and hedging purposes. In India, traditionally one of the world’s largest physical markets, buyers have been more cautious, delaying purchases in expectation of lower prices.
Silver has moved in the opposite direction this week, slipping 1.5% to $31.40 and on track for its weakest weekly showing since December 2023. The divergence between the two metals reflects differing investor preferences and industrial demand dynamics, with gold benefiting more directly from safe-haven flows.
Market watchers note several factors to monitor going forward: further trade-policy developments, central bank activity, and broader risk sentiment. Any fresh escalation in geopolitical or trade disputes could reinforce demand for safe assets like gold, while easing tensions or stronger industrial data might weigh on precious metals.
Overall, the current environment of heightened trade frictions and uneven physical demand has helped gold maintain elevated levels, while silver faces additional pressure from its industrial exposure and weaker short-term demand.