Gold prices have surged to a record high of $3,128.06 per ounce, driven by concerns over the impending US tariffs and other factors such as geopolitical instability and inflation worries.
The precious metal has risen 18% this year, its biggest quarterly gain since September 1986. Central banks are increasingly buying gold, with investor demand also on the rise. The increased demand is attributed to the perception of gold as a safe-haven asset amidst global uncertainty.
US President Donald Trump is expected to announce reciprocal tariffs on April 2, adding fuel to the rally. However, analysts believe that central bank purchases will support prices, with forecasts predicting an above-consensus $3,300 per ounce by end-2025.
Strong demand from European investors seeking safe-haven assets due to political uncertainties also contributed to the surge. The increased inflow into gold-backed exchange traded funds (ETFs) signals a renewed rush towards the precious metal.
As the global economic landscape becomes increasingly uncertain, gold remains a popular choice for those looking to protect their investments. With the US tariffs looming, investors are flocking to gold as a safe-haven asset, driving prices to record highs.
Source: https://www.reuters.com/markets/commodities/gold-sails-above-3100-uncharted-territory-us-tariffs-approach-2025-03-31