Gold prices soared to record highs on Monday, surpassing $3,100 per ounce. This surge came as investors reacted to increasing fears of inflation driven by recent tariff announcements from President Trump. Spot gold was trading at approximately $3,119 an ounce by mid-morning, showing a gain of 1.05% and previously hitting an all-time high of $3,128.06.
The rise in gold prices is significant, marking a potential for the best quarterly performance since 1986. Meanwhile, U.S. gold futures climbed even higher, settling at $3,151.10 per ounce. This year alone, gold has increased by around 18%, following a remarkable 27% rise in 2024.
Major banks, including Goldman Sachs, have adjusted their outlook for gold prices, citing ongoing trade tensions and strong demand from central banks. Goldman now predicts that gold could reach $4,500 per ounce within the next year under extreme market conditions. Daniel Ghali, a commodity strategist at TD Securities, noted strong buying activity from China and suggested that uncertainty surrounding U.S. trade policy will drive more investment into gold.
Despite some technical indicators suggesting that gold is currently overbought, experts believe the market’s enthusiasm is still strong. Nitesh Shah, a commodities strategist at WisdomTree, pointed out that the anxiety surrounding tariffs is contributing to gold’s bull run.
Goldman Sachs has also revised its forecast to target $3,300 per ounce by the end of 2025, with potential for prices to exceed $4,200 under severe market stress. Bank of America has similarly raised its expectations, estimating an average price of around $3,063 for 2025, with a potential rise to $3,350 in 2026.
In the broader market, other precious metals displayed mixed results. Silver saw a slight decrease of 0.4%, trading at $33.96 per ounce, while platinum and palladium both gained 0.8%, reaching $991.55 and $979, respectively.
Market anxieties were further fueled by Trump’s recent criticism of Russian President Vladimir Putin and warnings about imposing heavy tariffs on countries buying Russian oil if they hinder peace efforts in Ukraine. This backdrop of geopolitical tension continues to shape the precious metals market, keeping investor interest high.