Gold futures for June 2025 delivery hit a fresh record on the Comex exchange on Monday, soaring to a high of $3,395.01 per troy ounce, as per live trading data. The yellow metal opened at $3,332.26 and surged past its previous close of $3,327.37, continuing a remarkable rally that has already yielded 29.32% year-to-date returns and 100.13% gains over the past five years.
Key reasons behind gold’s surge:
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US-China Trade Tensions: The geopolitical standoff between the two largest economies has intensified, pushing global investors toward safe-haven assets like gold. Analysts suggest this uncertainty could fuel further gains unless there’s meaningful diplomatic progress.
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Weakening US Dollar: The inverse relationship between the dollar and gold is again at play. As the dollar declines, gold becomes more affordable in other currencies, boosting international demand.
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ECB’s Rate Cut: A 25-basis point rate cut by the European Central Bank has also aided gold’s rise. Lower interest rates increase money supply and reduce the opportunity cost of holding non-yielding assets like gold, making it more attractive.
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Festive Demand in India: According to the World Gold Council, strong buying ahead of Akshaya Tritiya and the wedding season in India is driving physical demand. Major jewellery retailers reported 25–35% YoY revenue growth in Q1, fueled by festive sales and a surge in gold’s appeal as a store of value.
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Volatility and Market Uncertainty: Global market volatility and continued speculation over interest rate movements are prompting investors to hedge through gold. Analysts note that unless US-China talks provide relief, gold’s upward momentum could persist.
What’s next?
With $3,400 now breached, traders are watching the next psychological barrier of $3,500, while some long-term bulls are eyeing $4,000 by year-end. However, any signs of global economic easing or rate reversals could trigger corrections.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always consult your financial advisor before making investment decisions.
