Gold Prices Soar Above $3,100 Due to Economic and Geopolitical Uncertainties

Gold Prices Surge Past $3,100 as Economic and Geopolitical Risks Grow

Gold prices hit a historic high on Monday, breaking through the $3,100 per ounce mark for the first time, as investors sought refuge in the precious metal amid rising economic uncertainties and geopolitical tensions.

Spot gold reached an all-time peak of $3,106.50 per ounce, continuing its steady climb after surpassing the $3,000 threshold earlier this month. The precious metal has gained more than 18% since the beginning of the year, bolstering its reputation as a safe-haven asset that helps shield investors from inflation and economic instability.

Several factors are driving this remarkable surge in gold prices, with analysts pointing to concerns about U.S. President Donald Trump’s trade policies and broader geopolitical risks. Since his election, President Trump has introduced a range of tariffs aimed at protecting American industries, including a 25% levy on imported vehicles and auto parts, along with a 10% tariff on all Chinese imports. A new round of tariffs is expected to be announced on April 2, further escalating the trade conflict.

“Tariff-related tensions will continue to propel gold prices upwards until there is clarity and resolution in the ongoing trade dispute,” said Marex consultant Edward Meir, highlighting the persistent uncertainty in global trade relations.

The optimistic outlook for gold has led major financial institutions to revise their price forecasts for the metal. Goldman Sachs now anticipates that gold could reach $3,300 per ounce by the end of the year, raising its previous forecast of $3,100. Similarly, Bank of America has updated its long-term projections, expecting gold to trade at $3,063 per ounce by 2025 and $3,350 per ounce by 2026—significantly higher than their previous targets of $2,750 and $2,625, respectively.

Analysts at OCBC maintain a positive view of gold’s future, citing its appeal as a safe-haven investment and a hedge against inflation. “Gold’s attractiveness has been further reinforced by ongoing global trade tensions and uncertainties surrounding tariffs. We are constructive on gold’s outlook, especially as global trade risks continue to loom,” they noted.

In addition to tariff concerns, strong demand from central banks and increased investment in gold exchange-traded funds (ETFs) have provided additional support for the metal’s rally. Central banks around the world have been accumulating gold as part of their reserve strategies, while ETFs have seen a surge in inflows as investors look for assets that can weather economic storms.

With global economic uncertainty continuing to rise, many experts believe that gold’s momentum is likely to persist. The ongoing geopolitical risks, including trade disputes and political instability, have kept investors on edge, further fueling the demand for gold. As a result, analysts suggest that gold may continue to outperform other assets, especially in times of crisis or instability.

Gold’s upward trajectory reflects a broader trend of investors looking for secure assets that can offer protection against inflation and market volatility. As long as economic and geopolitical risks remain high, gold is expected to retain its position as one of the top choices for investors seeking stability.