Gold prices hit record $3,128 per ounce

In a remarkable turn of events, gold prices have surged past the $3,100 per ounce mark, reaching an all-time high of $3,128.06. This surge positions gold for its strongest quarterly performance since 1986, driven by escalating global trade tensions and investor uncertainty.

The catalyst for this bullish trend is largely attributed to concerns over new tariffs announced by President Donald Trump. The impending tariffs have heightened fears of inflation and potential economic slowdown, prompting investors to flock to gold as a safe-haven asset.

Spot gold jumped to over $3,117 per ounce in morning trade, while U.S. gold futures settled at $3,151.10 per ounce. This marks a significant milestone, with gold prices rising approximately 18% so far in 2025, following a 27% increase in 2024.

Major financial institutions have adjusted their forecasts in response to gold's bullish trajectory. Goldman Sachs now anticipates gold prices reaching $3,300 per ounce by the end of the year, while Bank of America projects a rise to $3,500 within the next two years.

The surge in gold prices is a testament to the metal's enduring appeal as a safe haven during times of economic and geopolitical uncertainty. Investors are increasingly turning to gold as a hedge against the potential fallout from the ongoing trade tensions and the prospect of further tariffs.

However, analysts caution that the market may experience corrections in the near term. Technical indicators suggest that gold is overbought, and profit-taking could lead to short-term pullbacks. Nevertheless, the overall sentiment remains positive, with ongoing global uncertainties and continued central bank demand providing support for sustained high prices.