The US taxation has disturbed the financial market, raising concerns about inflation and global economic recession.
Although President Donald Trump has announced a 9-day moratorium on tariffs on most partners, he has increased tariffs on China to 145%, leading to Beijing imposing tariffs on US goods to 125%.
World gold price first exceeded the threshold of US $ 3,200/ounce on April 11. Gold prices generally increased by more than 22% this year.
"We expect the gold rally to continue next year and prices will stabilize at higher levels in the future," UBS analysts informed on April 11, and forecast gold prices to reach $3,500/ounce this year.
Commerzbank also raised its gold price forecast for the end of this year from $2,850 to $3,000, noting that assets managed in gold exchange-traded funds reached a record of $345.5 billion at the end of March.
Gold purchase activities of central banks are also a factor that promotes gold price soaring this year.
China's gold reserves - one of the world's leading gold consumption countries - reached 73.7 million Troy Ounce in late March, increased compared to 73.61 million ounce recorded at the end of February, when the Central Bank of China bought gold for the fifth month in a row.
Earlier this week, Deutsche Bank also raised its forecast for average gold prices in 2025 and 2026 to $3,139 and $3,700/ounce, respectively.
