Gold prices have soared to a record high of $2,911.30 per ounce, with analysts predicting the safe-haven metal will reach $3,000/oz as investors seek refuge from inflation and geopolitical tensions.
The US President’s latest tariff threats have sparked a new gold rush, driving prices up 11% this year after a 27% gain in 2024. Central banks are buying more gold than ever before, with the World Gold Council estimating a 54% increase in demand in Q4 2024 alone.
London bullion market players are scrambling to borrow gold from central banks, which store bullion in London, as investors seek to capitalize on the high premium. The amount of gold stored in London vaults fell 1.7% month-on-month to 8,535 metric tons worth $771.6 billion in January.
Analysts predict that central bank demand will remain robust in 2025 and propel prices further. China’s central bank added gold to its reserves for a third straight month, while the US is expected to introduce new tariffs on steel and aluminium imports, sparking concerns about trade wars and inflation.
One independent analyst noted that “gold is very clearly targeting the $3,000 level” and that the market’s momentum is powerful. With prices already at a record high, it remains to be seen whether gold will reach its long-sought milestone of $3,000/oz.
Source: https://www.reuters.com/markets/commodities/gold-bulls-lock-glittering-milestone-3000oz-sight-2025-02-10