International Gold Prices Surge Over 2.2%
Inspired by U.S. President Donald Trump’s strong endorsement of gold on his social media platform, along with a surge in safe-haven buying, international gold prices skyrocketed on Monday, surpassing the $3,400 mark.
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Gold Prices Continue to Rise Amid Tariff Fears
With the safe-haven trend triggered by Trump’s tariffs, international gold prices continued to rise today (April 21), increasing over 2.1% in a single day and reaching a historic high of $3,397 per ounce. Market analysts believe that today’s gains are closely tied to President Donald Trump’s “strong message” about gold posted on the social platform Truth Social.
The Golden Rule Of Negotiating And Success: He Who has the gold makes the rules
This post primarily announces the strategy behind U.S. tariffs, stating “only those holding the cards are winners.” However, interpretations vary; many gold bulls on Wall Street have begun to cite this post as evidence that Trump will turn the U.S. into a nation that supports gold assets. Conversely, many internet users have started to question whether this is yet another instance of Trump manipulating the market, suggesting “one should investigate whether Trump’s family and company have engaged in any gold transactions recently.”
Gold has hit an all time high after Trump said: He who has the gold makes the rules pic.twitter.com/LjrQ9Fh86u — unusual_whales (@unusual_whales) April 21, 2025
Surge in Safe-Haven Demand: Dollar Plummets
The spike in gold demand may be linked to another critical factor: the decline of the dollar. The current dollar-to-euro exchange rate has recently hit a one-year low, and the U.S. is experiencing a rare situation where stocks, bonds, and the dollar are all declining simultaneously. This situation suggests that the global economy is moving away from the dollar system’s control. Trump’s recent comments threatening Federal Reserve Chairman Jerome Powell regarding his position have also contributed to market uncertainty.
Data from the stock market shows that over the past 25 years, whenever the global stock market (using the S&P 500 index as an example) has faced significant pressure, gold has consistently performed well. For instance, during the 2008 global financial crisis, the S&P 500 index plummeted by 57%, while gold prices rose by 39%. In the early days of the COVID-19 pandemic in 2020, U.S. stocks fell by 35%, whereas gold increased by 32%. In the current trade war context, the S&P 500 index has retreated nearly 20% from its recent highs, while gold prices have risen over 25% during the same period, demonstrating its power as a safe haven.
Furthermore, after gold reached a new high, Bitcoin often follows suit after a while, suggesting that Bitcoin has become recognized as a secondary safe-haven asset by the market.
Short-Term Outlook: Focus on Three Key Variables
The short-term trends for gold and Bitcoin will largely depend on the progress of tariff negotiations between the U.S. and China, the political uncertainty surrounding Jerome Powell’s position at the Federal Reserve, and the movement of the dollar. It is important to note that these three factors may influence and pull against each other; for example, a weakening dollar is favorable for rising gold prices denominated in dollars.
Among these three factors, the dollar’s weakening is the most predictable. Trump mentioned in a White House press conference that a declining dollar is not necessarily a bad thing, as it raises the costs for trade-manipulating countries and enhances the competitiveness of U.S. exports. As for the other two factors, they will depend on Trump’s future statements, which still carry significant uncertainty. If this uncertainty dissipates, it could lead to a substantial correction ahead.
