Late Gold Rally Hits Record Price of $3,128 As Market Uncertainty Continues to Spook Investors

Gold soared to a record $3,128.06 per ounce on Monday and extended a powerful rally that reflects rising anxiety in the markets. Spot gold closed at $3,116.82, while U.S. gold futures settled at $3,148.00. The quarter ended with a gold rally marking the strongest performance since 1986. The surge into safe havens reflects concern that immediate interest rate cuts could signal worsening economic conditions. Read more.

Precious metals silver, platinum, and palladium also advanced along with the gold rally. Silver peaked at $34.58 per ounce before retreating slightly. The broad movement into metals confirmed investors’ push to a deeper rotation away from riskier assets. Economic indicators remain shaky, and the pressure from trade policy is building by the day. Peter Grant, vice president at Zaner Metals, said the move reflects “safe-haven demand driven by concerns around tariffs, trade, and global instability.” That fear is now baked into both investor sentiment and price action.

Fed Policy Bets Strengthen the Bullish Case

The Federal Reserve’s preferred inflation gauge—the PCE price index—rose 0.4% in February, slightly above expectations. Despite that, markets still see monetary policy easing later in the year. Traders expect 63 basis points in rate cuts before the year ends, with July seen as the likely starting point.

As a safe haven instrument, gold often performs well when rates fall. Lower yields reduce the opportunity cost of holding metals, hence the latest gold rally. As expectations for rate cuts rise, funds tend to flow into non-yielding assets like gold and silver. Technical indicators back up the trend. Gold broke through resistance at $3,097, with short-term targets pointing toward $3,150. Support sits near $3,076 and $3,035, and momentum favors buyers. Unless data turns sharply, the setup remains constructive.

Meanwhile, silver continues to hold above its breakout level of $33.92. If it keeps up, analysts expect a retest of $34.58 and potentially a push toward $35.07. As both a precious and industrial metal, silver’s outlook also benefits from stabilizing manufacturing sentiment.

Trade Policy Adds a New Layer of Risk

President Donald Trump’s tariff policies are quickly becoming the central driver of safe-haven demand. A 25% levy on non-American vehicles will take effect on April 3, and broader reciprocal tariff announcements are expected the day before. As a result, the timeline has added urgency to investors scrambling to reposition themselves in the market.

Additionally, Trump’s recent statements have raised the stakes further. He threatened sanctions on Russian oil and expressed frustration with Ukraine and Iran. These moves have drawn attention to risks that go beyond economics and into geopolitical flashpoints.

Tim Waterer of KCM Trade noted that “markets’ anxiety levels have been ramping up ahead of the reciprocal U.S. tariff announcements,” adding that defensive positioning remains elevated. Even if the actual announcements are less severe, the shift in sentiment is already visible across asset classes. The dollar has weakened, and demand for metals has surged. That rotation appears more structural than speculative.

Data and Fed Signals in Focus This Week

This week’s economic calendar could determine the next leg of the gold rally. Investors are watching three key U.S. reports this week: manufacturing data from the Institute for Supply Management (ISM) on Tuesday, private payrolls from ADP on Wednesday, and the government’s Non-Farm Payrolls on Friday. Together, they’ll help shape expectations for the Fed’s next steps.

Comments from Fed Chair Jerome Powell and FOMC member Christopher Waller may also reset market assumptions. A softer labor report or dovish tone from Powell could extend the rally into Q2. But even in the event of short-term consolidation, the factors driving metals higher remain unresolved. The combination of Fed policy shifts, political volatility, and inflation pressure is keeping demand for safe-haven assets elevated. Until clarity emerges on those fronts, metals are likely to stay in favor.

How should investors like yourself position now that gold has crossed $3,128? Tell us what you’d do in this situation.

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