Gold Climbs to $3,375 as Investors Brace for Global Instability

By Eshorjit : Infinitrix News Team | May 6, 2025

Global Markets — Gold surged to a two-week high of $3,375 per ounce on Monday as investors poured into traditional safe-haven assets amid renewed concerns over trade disputes, interest rate uncertainty, and geopolitical instability. The move marks one of the sharpest weekly rallies for the precious metal in 2025.

Flight to Safety Intensifies

The rally comes on the back of continued market jitters surrounding the Federal Reserve’s rate path, along with new tariff escalations that have unsettled equity markets worldwide. Bond yields fell sharply while the dollar weakened, adding further support to gold’s momentum.

“This isn’t just a technical move—it’s a deep demand for protection,” said Jasmine LaRue, metals strategist at Sterling Commodities. “Investors are pricing in uncertainty across multiple fronts.”

Gold ETFs also saw inflows of nearly $1.1 billion in the past week, according to data from World Gold Council, with institutional buying leading the charge.

Central Bank Activity Adds Fuel

Several emerging market central banks, including those in South Africa and Malaysia, have reportedly boosted their gold reserves in recent months. Analysts say these actions are hedging strategies against a weakening global currency basket.

“There’s quiet accumulation happening beneath the headlines. Sovereigns are hedging future monetary shocks,” said Gaurav Mehta, macroeconomic analyst at SafeGold Trust.

China, too, has shown signs of increasing official gold purchases, although exact volumes remain unconfirmed by Beijing.

Technical Outlook: Next Target $3,500?

Gold’s breakout above the $3,300 level opens the door to test the $3,500 psychological mark, traders said. Key resistance sits at $3,420 while short-term support holds around $3,250.

Momentum indicators, including the RSI and MACD, remain in bullish territory, suggesting further upside unless macro data or Fed commentary shifts dramatically.

Investor Sentiment Turning Defensive

Retail investors are also jumping in, with gold-related search terms trending sharply upward across Google Trends and finance apps. Online brokerage platforms report a 22% increase in gold-linked trade volumes.

Meanwhile, digital gold platforms such as MMTC-PAMP and GoldVault India report record micro-investment activity from younger, first-time buyers.

“People are taking gold seriously again—not just as a hedge, but as an asset of discipline,” LaRue added.

Conclusion

Gold’s 2025 trajectory appears increasingly tied to macro volatility and investor caution. As long as inflation expectations stay unpredictable and geopolitical stress persists, analysts say gold could remain the asset class of choice for capital preservation.