Why Gold Prices Surged to a Record High on Wednesday

On Wednesday, gold prices reached another record high as AI chip veteran Navidia warned that the stock would be a 5 billion hit in the stock after its earnings.

Gold futures contracts at a record high level of $ 3,350 an ounce on Wednesday afternoon were more than 3%.

Since the beginning of the year, gold prices have increased by over 25% as investors come to safe havens between tariffs and uncertainty about their economic decline. Gold ETF recorded a net flow every week, but one in the first quarter, with the demand to jump at the highest level in late February and again in late March.

President Trump’s announcement of “mutual” tariff earlier this month can also increase the greater demand in April. Following Trump’s tariff announcement, 49% of the fund managers surveyed by the Bank of America labeled the most crowded trade of “Long Gold” Wall Street. This was the first Bofa Global Fund Manager Survey in two years in which “Long Great Consumption” was not considered the most popular business. Fund managers (42%) estimates that gold will be the best performing assets of 2025.

UBS Analysts said in a note on Monday, “The case of connecting gold allocation has become more hypnotic than ever in this environment of tariff uncertainty, weak growth, high inflation, geopolitical risk and US assets and US $.”

Analysts said, “We accept the poor historical operation/cost performance of gold miners, but fast gold equity.” Shares of Pneumont (NEM) and Barrick Gold (Gold) followed a high level of gold prices on Wednesday.

Can the rally continue?

According to the Gold Minor Trade Association, World Gold Council, there are several reasons to expect a run-up recently.

First, the central bank has been a major driver of demand for gold in the last few years, and researchers do not expect them to leave soon. Investors are also historically preserved, with only 1.6% gold ETF accounting of all US ETFs compared to 7.6% in 2011, with the summit of a rally compared to today. In addition, geopolitical and economic uncertainty is likely to remain elevated as the end of the 90-day tariff stagnation approach of the White House.

Risk for the rally involves the possibility that prices from investors and central banks have slow demands, or that a liquidity crisis – in which analysts have seen rising risk – may force investors to sell gold to cover margin calls. Through bilateral agreements, the resolution of business stress can also rule on investors’ risk hunger and act as a headwind to sleep.