Why did the price of gold rose above 3400 dollars an ounce … and does the climb continue?

Gold rose above 3400 dollars an ounce yesterday, Monday, to record a new record, driven by the weakness of the dollar and the escalation of commercial tensions between the United States and China, which strengthened the demand for the precious metal as a safe haven, and in this matter we explain the reason for the precious metal to this level and its future expectations, according to the Maining platform.

What is the reason for the rise of gold?

Gold futures jumped as the dollar fell to its lowest levels in three years, amid an increasing demand from investors to buy the precious metal. Gold prices have risen by about 30 percent since the beginning of 2025, and about 8 percent since US President Donald Trump announced comprehensive customs duties on April 2.
Also read: Why is gold a good safe haven yet despite its high prices?

The price of instant and future gold

The instant gold price increased by more than 3 percent to reach 3430.47 dollars per ounce, achieving its highest level ever.
The price of the most active American gold contract was 3435.10 dollars, up by 106.70 dollars, or 3.2 percent compared to the previous settlement price.
During early trading, the June delivery price reached $ 3442.30 an ounce, which enhances the indicators to continue the upward trend.

Gold breaks the 1980 numbers

Gold also exceeded the standard level in 1980, which was then $ 850 an ounce, on the basis of inflation, which reflects the size of the current economic transformations.

Trump’s pressure on the federal reserve

President Trump rose his attacks against Federal Reserve Chairman Jerome Powell, describing him as a “great loser”, and demanded an immediate reduction in interest rates.
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Trump had previously stated that “Powell’s dismissal could not take place enough”, after Powell warnings that the new customs duties may lead to high rates of inflation in the short term.
For his part, Kevin Haysit, the White House’s economic advisor, said that Trump is actually studying Powell’s dismissal.
In this context, Christopher Wong, a strategic expert at “Oversia China Banking Corp”, warned that “the dismissal of Powell not only undermines the independence of the federal reserve, but also may also erode confidence in the dollar, and enhances flows towards safe havens such as gold.”

Analysts: Gold prices are candidate for more gains

Gold witnessed a significant increase during the year 2025, supported by a decrease in the confidence of investors in American policies and the increase in central bank purchases around the world.
The City Bank expected that gold prices will rise to $ 3500 during the next three months, with the continued investment demand to outperform the supply of the mining sector.
City analysts explained that “concerns related to the impact of customs duties on growth in the United States and the world, in addition to the strength of institutional demand, will pay prices for further rise.”
“The problems that affected gold in 1980, such as the Iranian oil and revolution crisis, were contained at the time, which allowed low prices, but the situation today is different with the collapse of international cooperation and the continued geopolitical tensions.”

Does gold reach 4000 dollars?

Gold has risen since the beginning of 2025 by more than $ 700, recording a series of new records. The escalation of fears of a global trade war led investors towards buying gold to hedge the risks.
Grand financial institutions have adopted a more optimistic view of gold, including “Goldman Sachs”, which expected the price to reach $ 4,000 an ounce by mid -2026, driven by the continued global demand for safe havens.