Tue Apr 22 01:40:00 UTC 2025: ## Gold Soars to Record High Above $3,400, Fueled by Safe-Haven Demand and Trump’s Comments

**NEW YORK** – Gold prices surged to a record high above $3,400 per ounce on Monday, marking a more than 2% increase. The precious metal’s rally is attributed to a confluence of factors, including escalating global trade concerns, a weakening US dollar, and increased safe-haven buying. This marks the first time gold has traded above this level if the price holds through the close of trading.

The surge is further fueled by recent comments from former President Donald Trump on his Truth Social platform, where he reiterated his belief that “He who has the gold makes the rules.” This sentiment, previously expressed on Twitter in 2013, appears to have reignited investor interest in gold.

Central banks have significantly increased their gold reserves in recent years. Russia’s reserves have more than doubled since 2013, while China’s have also seen substantial growth. Turkey’s gold holdings have also increased dramatically, placing it among the world’s top gold holders. The United States remains the world’s largest holder of gold reserves.

Analysts predict further short-term gains, with some projecting a potential rise to $3,500 per ounce. However, concerns remain about the speed of the price increase, with warnings of potential profit-booking if prices fall below $3,300. The current price in India is Rs 96,420 per 10 grams of 24-carat gold, nearing the Rs 1 lakh mark.

Gold’s strong performance is consistent with its historical behavior during periods of equity market stress. Data from the past 25 years shows a strong positive correlation between declines in the S&P 500 and increases in gold prices. The current tariff war between the US and China, along with uncertainty surrounding the future of the US Federal Reserve chair, are also contributing to gold’s appeal.

The short-term outlook for gold depends on the resolution of trade tensions, the stability of the US Federal Reserve, and dollar movements. While the current rally is impressive, analysts caution investors to proceed with caution given the rapid price increase. (Note: Information about the Suzuki Swift AllGrip FX concept car is unrelated and has been omitted from this news report.)

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