Gold prices hit a record high on Monday, crossing $3,100 per ounce for the first time. Investors are rushing to buy gold as a safe-haven asset amid concerns over US tariffs, economic risks, and geopolitical tensions.
Gold Hits a New Record
Spot gold prices reached $3,106.50 per ounce, marking a significant increase of over 18% this year. This comes after gold surpassed the $3,000 per ounce mark earlier this month, highlighting growing fears over inflation, trade conflicts, and global instability.
Banks Raise Gold Price Predictions
With gold’s value rising, major banks have adjusted their price forecasts. Goldman Sachs now expects gold to reach $3,300 per ounce by the end of the year, while Bank of America predicts prices will be around $3,063 per ounce in 2025 and $3,350 per ounce in 2026.
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Tariffs and Geopolitical Risks Fuel the Rally
US President Donald Trump has proposed new tariffs, including a 25% tariff on imported cars and auto parts and a 10% tariff on all Chinese imports. He plans to introduce more tariffs on April 2, which has added to economic uncertainty. Analysts believe these trade tensions will keep gold prices rising.
Other Factors Supporting Gold’s Rise
Experts also point to strong demand from central banks and increasing investments in gold-backed funds as key reasons for the metal’s rapid rise. Analysts at OCBC bank say gold’s role as a safe haven is strengthening due to ongoing global trade disputes.
Gold’s rally is expected to continue as long as trade tensions, inflation worries, and geopolitical risks remain high.
