Gold Soars As Dollar Weakens And Trade Wars Heat Up

Based on market numbers, gold's price spike to $3,430 mirrors increasing worry among investors regarding inflation and the world's economic stability.

Gold price today, 28 April: The yellow metal shone to a record peak yesterday to a little over $3,400 an ounce as investors get jittery about the economy. The increase comes as the US dollar retreats to a three-year low and tensions between large economies rise, especially from the US-China trade front.

According to market numbers, gold’s price spike to $3,430 reflects increasing worry among investors regarding inflation and the world’s economic stability. The precious metal, traditionally regarded as a safe haven in times of uncertainty, has the potential to breach $3,500 in the middle of the year if trends persist, according to Nikko Asset Management’s Sebastien Payet.

"Everyone is talking about the US defaulting on its debt and the dollar going lower. Plus, there are worries about the Chinese economy slowing down and the trade war getting worse," Sebastien Payet, senior portfolio manager, APAC at Nikko Asset Management, was quoted as saying by Bloomberg.

Gold price today: Multiple investors shifting funds

Several investors are reportedly removing funds from volatile assets and diverting them towards gold, building up the commodity’s status as a solid form of investment amidst choppy market conditions.

"If they cut interest rates, which I think they will, the price of gold will go higher still. Gold's value will increase because it's tangible and scarce. If they cut interest rates, they'll be making a policy mistake. But they'll do it nonetheless, and that will send the price of gold soaring even further," said Peter Schiff, economist and managing director of Value ..."

Gold's price is going up because the Fed needs to raise interest rates. Yet everyone, including Trump, is calling for the Fed to cut them. The Fed will likely ignore gold's warning and cave to the pressure to cut. That policy mistake will send gold soaring.

— Peter Schiff (@Peter Schiff) April 21, 2025

"I'm expecting a huge market decline. We're still in a bull market, and the shares are overvalued, despite having fallen recently. If there is a recession, which I think there will be, it will be the worst economic downturn since the Great Depression. Even a 50% market decline wouldn't represent how bad things might become," added Schiff.

On the other hand, if the US does default on its debt, which isn't something I'd like to see but it's a strong possibility considering the administration's handling of finances, we might witness an even steeper economic downturn than the Great Depression. It could be catastrophic.

Gold price today: Bitcoin creeps up

Meanwhile, as gold makes the headlines, Bitcoin crept up to $86,885, rising by 2.80% as per the data by Coingecko. The digital currency registered a four-week record from recent trading sessions, according to CoinMarketCap data.

A month ago on Mar. 6th, Trump established the Strategic Bitcoin Reserve. So far, the value of the Bitcoin held in that reserve has declined by over 12%. Had the U.S. sold it and added to our gold reserve, not only would we have avoided that loss, but we would now have a 2% gain.

— Peter Schiff (@ Peter Schiff) April 7, 2025

However, not everybody views the growth of Bitcoin optimistically. Notably, Schiff is an avid critic of the cryptocurrency and shot down a proposal to include Bitcoin in national reserves after the coin recently fell by 12% in value.

According to Schiff, while gold usually swings between 10-20% annually, Bitcoin experiences more significant flunctions, varying by over 50%, rendering it too volatile for his preference.

"If you put money in a bank, it might yield 0% interest, but it's guaranteed. You'll get back the principal and perhaps a bit more. In contrast, if you invest in Bitcoin, there's a chance it could go up significantly, but there's also a risk of losing a portion or even all of your investment, and that's not something I'm willing to gamble with," explained the economist.

"I'd rather invest in an asset class that's likely to appreciate in value over time, such as gold, which has a long history of serving as a hedge against inflation and economic uncertainty. Bitcoin is a highly speculative asset class that's not suitable for those seeking stable and reliable investments," he added.

Some experts remain bullish on crypto's future

Despite the criticism, some market watchers remain positive about Bitcoin’s prospects. Jan3 CEO Samson Mow believes that Bitcoin could reach $1 million much sooner than his previous forecast of 2031.

Adding fuel to the bullish narrative, Strategy, headed by Michael S