Gold hits record highs at over $3K as investors seek safe haven from Trump tariffs
Gold prices reached unprecedented levels on Monday, surpassing $3,100 per ounce amid growing investor fears of higher inflation due to recent tariff announcements by President Trump.This surge has placed gold firmly on course for its best quarterly results since 1986.Spot gold was trading at around $3,119 an ounce as of 10:43 a.m.Eastern Time — a gain of 1.05%, after previously touching an all-time high of $3,128.06.Meanwhile, US gold futures climbed even higher, up by 1.2% to settle at $3,151.10 per ounce.This latest rise continues gold’s strong upward trend, adding around 18% this year alone, after an impressive 27% surge throughout 2024.Wall Street big banks have raised their outlook on gold prices citing trade-war tensions and strong central bank demand, with Goldman Sachs expecting gold to surpass $4,500 within the next 12 months under extreme market conditions.“There are signs of strong Chinese buying activity that are flowing through … We expect the continued uncertainty with respect to President Trump’s trade policy to fuel macro funds to purchase more gold,” said Daniel Ghali, commodity strategist at TD Securities.Analysts also attribute the sustained growth to supportive monetary conditions and robust investor interest in exchange-traded funds.Despite technical indicators like the Relative Strength Index signaling that gold is currently overbought at a level above 77, experts contend that the market’s enthusiasm is still growing.“Gold’s bull run is the reflection of the anxiety around tariffs,” WisdomTree commodities strategist Nitesh Shah told Reuters.“The fears that these tariffs are going to be growth-constraining, potentially leading to lower economic outcomes”, is supporting gold, he added.Goldman Sachs revised its gold price outlook upward for the end of 2025, projecting a new target of $3,300 per ounce from the previous estimate of $3,100.Under severe market stress conditions, the bank believes gold could exceed $4,200 per o...