An increase in gold prices was witnessed as it surpassed the significant milestone of $3,200 per ounce for the first time, reaching a new peak due to a weakening dollar and the escalating trade tensions prompting investors to seek refuge in safe-haven assets.

The spot gold price climbed by 1.3% to $3,216.48 per ounce, hitting an all-time high of $3,219.73 during the session, marking a weekly gain of over 5%. U.S. gold futures also rose by 1.9% to $3,236.00.

The decline in the U.S. dollar was the primary factor driving the surge in gold prices, as observed by Ilya Spivak, the head of global macro at Tastylive, attributing it to the shift away from USD-based investments amid uncertainty over trade policies.

Following President Donald Trump's decision to increase tariffs on Chinese imports and delay announced tariffs for other countries, stock indexes experienced a decline, further enhancing the appeal of gold. The ongoing tit-for-tat tariff increases between the U.S. and China raised concerns about the possibility of further tariff hikes by Beijing.

Analysts anticipate that the next target for gold could be $3,500, albeit with potential obstacles along the way, according to financial market analyst Kyle Rodda from Capital.com.

Factors such as central bank acquisitions, expectations of interest rate cuts by the Federal Reserve, geopolitical tensions, and inflows into gold-backed exchange-traded funds have also contributed to the upward trend in gold prices this year.

Amid unexpected decreases in U.S. consumer prices in March, inflation risks are viewed as leaning towards an increase, leading traders to predict that the Federal Reserve may resume rate cuts in June and potentially reduce rates by a full percentage point by the end of 2025.

While spot silver and platinum prices experienced slight declines, palladium prices rose slightly during the period.