Gold Reaches New Highs as Stocks Tumble
Last week, gold posted a 1.3% gain as safe-haven inflows from investors concerned about trade tensions supported bullion. This week’s economic calendar was packed, with a focus on consumer confidence data, GDP figures, and an inflation report set for release this morning.
U.S. stocks started the week on a positive note following reports that President Trump might grant “a lot of countries breaks” on tariffs originally set to take effect on April 2nd. The tech-heavy Nasdaq Composite led major indices with a 2.4% daily gain, fueled by optimism over potential tariff relief. Meanwhile, gold opened the week at $3,023 and edged down to $3,016 on Monday as the dollar index hit a two-week peak of 104.411.
On Tuesday, the Conference Board reported that its consumer confidence index fell to 92.9—its lowest level in over four years—falling short of economists’ forecast of 94.5. The decline reflected growing consumer concerns over inflation and tariffs.
Despite the disappointing consumer confidence reading, Wall Street stocks eked out gains. Meanwhile, gold and silver recorded modest upticks, reaching $3,024 and $33.62, respectively, as ongoing tariff concerns and inflation fears continued to provide support.
By Wednesday, market sentiment shifted as President Trump announced a 25% tariff on all non-U.S. vehicles, effective April 2nd. The news ended a three-day winning streak for the S&P 500 and Nasdaq, with shares of Tesla and Nvidia taking the hardest hit, both tumbling more than 5%.
Gold faced mixed pressures throughout Wednesday’s session, weighed down by elevated bond yields and a stronger dollar. However, trade tensions and inflation worries helped offset these headwinds, allowing gold to close slightly higher at $3,034 an ounce.
On Thursday, investor anxiety over tariffs dragged stocks lower for a second straight session. While equities suffered, safe-haven demand drove gold to a new all-time high of $3,078, marking a 1.4% daily gain.
This morning, gold extended its rally, hitting its 18th record high of 2025. The metal notched its fourth consecutive weekly win, closing at a fresh record of $3,082 with a 1.9% weekly gain. Silver followed suit, climbing nearly 3% on the week to $34.12 an ounce.
Unlike metals, Wall Street endured a continued sell-off as concerns over inflationary pressure from tariffs fueled a risk-off sentiment. The Dow Jones Industrial Average closed the week 1.42% lower after a 700-point drop today. The Nasdaq led weekly losses, sliding 4.02%, while the S&P 500 declined 2.41%.