As investors sought solace in the safe-haven asset amid mounting economic uncertainty and geopolitical tensions, gold prices surged to an all-time high on Monday, breaking $3,100 per ounce for the first time.
After breaking through the psychological $3,000 barrier earlier this month, spot gold continued its upward trend, achieving a record-breaking $3,106.50 per ounce, according to Reuters. Since the beginning of the year, the precious metal has increased by more than 18%, enhancing its standing as a hedge against inflationary pressures and economic uncertainty.
A number of causes, including worries about U.S. President Donald Trump’s trade policy and larger geopolitical dangers, are cited by market analysts as contributing to the increase. A 25% tariff on imported cars and auto parts, as well as an additional 10% tax on all Chinese imports, are among the levies that Trump has proposed since taking office in an effort to safeguard American businesses. On April 2, a new set of reciprocal tariffs is anticipated to be revealed.
According to Marex expert Edward Meir, “tariff issues will continue driving (gold) prices higher until there is some finality to the tit-for-tat campaign.”
Major financial organizations have revised their pricing projections due to the bullish outlook on gold. Goldman Sachs has raised its prior forecast of $3,100 per ounce to $3,300 by year’s end. In a similar vein, Bank of America now projects that gold will trade at $3,063 an ounce in 2025 and $3,350 an ounce in 2026, which is far higher than the previous estimates of $2,750 and $2,625, respectively.
OCBC analysts are nonetheless upbeat about gold’s future, saying, “Given these geopolitical worries and tariff uncertainties, gold’s attractiveness as a safe haven and inflation hedge has further increased for the time being. Despite the continued friction and uncertainty surrounding global trade, we maintain a positive outlook for gold.
The metal’s incredible advance has also been further supported by robust central bank demand and rising inflows into gold exchange-traded funds (ETFs). Given the ongoing instability in the world economy, many analysts think gold’s momentum is far from done.
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