Gold prices surge to an unprecedented $3,317.90 per ounce this week as central banks accelerate dollar dumping and global unrest intensifies. This remarkable climb in the commodity market strengthens gold’s safe haven appeal amid mounting tensions.

live gold price
Source: GoldPrice.org

Also Read: De-dollarization: Goldman Sachs Predicts Grim Future for U.S. Dollar

Central Banks’ Dollar Dumping Drive To Gold Record High – First Time Ever Over $3300

Golden globe with flowing gold and dollar bills depicting global financial shifts
Source: Watcher Guru

Trump’s Policies Fuel Gold’s Rally

Gold price chart showing upward trajectory to record high of $3,317.90
Source: FXStreet

Gold prices surge following U.S. President Donald Trump’s order for an investigation into potential tariffs on critical mineral imports. This move, targeting China, has sparked investor flight to safe haven assets.

Ole Hansen, head of commodity strategy at Saxo Bank, stated:

“Trump’s trade war shows no signs of easing after the President ordered a probe into critical minerals, semiconductors and pharmaceuticals, sparking a fresh move towards safe havens and out of stocks.”

Central Banks Abandon Dollar Holdings

Central banks’ dollar dumping continues to drive gold prices surge in the commodity market. The dollar index weakened by 0.5% against rival currencies, making gold more attractive for international buyers.

Hansen explained:

“We are upgrading (gold forecast) to $3,500 supported by a world in disarray where investors seek shelter amid recession fears, geopolitical tensions, fiscal debt concerns and central banks diversifying their holdings away from USD and dollar-based assets.”

Also Read: Here’s How Much $2,000 in Solana at Its All-Time Low Is Worth Today

Financial Institutions Raise Forecasts

Major banks revise gold price projections upward amid global unrest. ANZ raised its year-end gold price forecast to $3,600 per ounce, reflecting confidence in gold’s safe haven status.

Chart comparing declining dollar index and rising gold prices
Source: FXStreet

U.S.-China tensions intensified as China directed airlines to halt Boeing jet deliveries, while new export restrictions were imposed on AI chips to China.

Also Read: US Stock Market Could Plunge 50% After Tariffs Resume

The gold prices surge has lifted other precious metals, with silver rising 2.4% to $33.07 an ounce, as investors seek protection from market volatility in the commodity market.