On Monday, April 21, 2025, gold prices shattered records, with spot gold peaking at $3,395.95 per ounce.

That’s a 2% surge in a single session and a mind-blowing $700+ gain since the beginning of 2025.

If you’re wondering why the shiny metal is suddenly the hottest asset on the planet, let’s break it down.

Why is Gold Skyrocketing Right Now?

Two major reasons.

One, the U.S. dollar is weakening.
Two, trade tensions between the U.S. and China are heating up.

The Dollar’s Losing Its Mojo

Normally, the U.S. dollar is king. But lately? Not so much.

Thanks to economic uncertainties, political drama, and the latest round of public attacks from former President Donald Trump on Fed Chair Jerome Powell, the U.S. dollar index (DXY) has dropped to a 3-year low.

That makes gold cheaper for investors using other currencies, which means more demand and higher prices.

U.S.-China Tensions are Back (Surprise, Surprise)

The trade relationship between the U.S. and China has been rocky, but recent developments have reignited fears of an all-out economic clash.

China recently warned other countries against aligning with U.S. trade deals at its expense, a clear signal that diplomatic frost is setting in.

Add in concerns over Trump-era tariffs making a comeback, and suddenly, gold, the ultimate “safe-haven” asset, looks like a much cozier place for investors’ cash.

Analysts are Already Eyeing $3,500 Gold

According to UBS analyst Giovanni Staunovo, gold could soon make a run for $3,500/oz, especially if the current “risk-off” mood continues in global markets.

“Ongoing concerns on the role of the dollar as a reserve currency support gold,” Staunovo said. “We look for a move to $3,500 over the coming months.”

IG’s Yeap Jun Rong added that while gold is on a tear, it may be a bit technically overbought in the short term, meaning a small pullback could happen before the next big rally.

So… Should You Be Buying Gold Right Now?

If you’re worried about economic instability, inflation, or just want to diversify your portfolio, gold is a tried-and-true hedge.

But if you’re expecting to jump in and get rich quick? Be careful, the market’s hot right now, and crowded trades can get choppy fast.

For long-term investors, gold remains a solid piece of the puzzle, but don’t bet the farm on it.

Gold isn’t the Only Metal Getting Love

Silver is up 0.5% to $32.74/oz, Platinum gained 0.4% to $971.10, and Palladium slipped 0.3% to $958.93.

Silver is often seen as gold’s little sibling, and it tends to follow in big brother’s footsteps, sometimes even outperforming in bull runs.

Platinum and palladium are more tied to industrial use, so their moves are less dramatic (for now).