Gold prices on Monday (31.3) soared above $3,100/ounce for the first time. According to Reuters, this increase comes from a number of reasons such as concerns about US President Donald Trump's tariffs and potential economic impacts, combined with geopolitical concerns. Many supporting factors have fueled a new wave of investment in this safe-haven asset. In the trading session, spot gold prices reached a record high of 3,106.50 USD/ounce at one point.
Since the beginning of the year, gold prices have set many new records. The precious metal has gained more than 18% in the year, taking advantage of its reputation as a hedge against economic and geopolitical uncertainty.
Earlier this month, gold prices surpassed $3,000 an ounce for the first time, a milestone that experts said reflected growing concerns about economic uncertainty, geopolitical tensions and inflation.
The increase in gold prices has caused many banks to raise their gold price forecasts for this year. Currently, the appeal of gold as a safe and hedge against inflation has become stronger as it faces geopolitical concerns and tariff uncertainty. We remain optimistic about the outlook for gold amid global trade tensions and ongoing uncertainty, said analysts at OCBC.
Goldman Sachs, Bank of America and UBS have all raised their gold price forecasts this month. Goldman predicts gold will reach $3,300/ounce by the end of the year, down from $3,100 a year ago. BofA expects gold to trade at $3,063/ounce in 2025 and $3,350/ounce in 2026, up from its previous forecast of $2,750/ounce for 2025 and $2,625/ounce for 2026.
Donald Trump has proposed applying a series of new tariffs to protect US industries and reduce trade deficits since his inauguration, including a 25% tax on imported cars and auto parts, along with an additional 10% tax on all imported goods from China. He plans to announce a series of new countervailing tariffs on April 2.
Tariff issues will continue to push gold prices higher until this response campaign has a clear end, said consultant Marex, Edward Meir.
In addition, other factors such as strong demand from central banks and capital flows from exchange-traded funds (ETFs) will also continue to support strong gold price growth this year, according to analysts and investment banks.
