Gold Shatters $3,100 Barrier as US Tariffs Stoke Market Jitters and Safe-Haven Demand
Wednesday, April 30th 2025
Gold Prices Reach New Heights
Gold continues its remarkable ascent, shattering records as prices surged past US$3,100 per ounce for the first time on Monday. The latest rally has been fueled by escalating trade tensions linked to U.S. President Donald Trump’s tariff policies, coupled with growing geopolitical uncertainties, prompting investors to seek refuge in the precious metal.
Record-Breaking Surge in Gold Prices
The spot price of gold climbed to an all-time high of $3,106.50 per ounce, marking a significant milestone in its bullish trajectory. With an impressive gain of over 18% this year, gold has reaffirmed its role as a safe-haven asset during times of economic instability and geopolitical turmoil.
Psychological Barrier Breached
Earlier this month, gold breached the psychologically crucial $3,000 per ounce level, reflecting rising concerns over inflation, economic fragility, and global tensions. This surge has led major financial institutions to revise their forecasts upward, anticipating sustained momentum for bullion in the coming months.
Expert Insights and Market Outlook
Market analysts at OCBC remain optimistic about gold’s future, stating, “Gold’s appeal as a hedge against inflation and economic uncertainty has only been reinforced amid ongoing trade disputes and geopolitical risks. We maintain a positive outlook for the metal.”
Revised Price Forecasts from Major Banks
In response to gold’s relentless climb, major banks have adjusted their price projections. Goldman Sachs now predicts gold will reach $3,300 per ounce by the year’s end, while Bank of America expects prices to hover around $3,063 per ounce in 2025 before climbing to $3,350 per ounce in 2026. These revised forecasts indicate a strong belief in gold’s continued growth, exceeding previous estimates.
Trade War and Tariff Concerns Fuel the Rally
The ongoing trade war and proposed tariff hikes have played a significant role in gold’s ascent. Since assuming office, Trump has aggressively pursued protectionist policies, proposing tariffs such as a 25% duty on imported automobiles and a 10% levy on all Chinese imports. A fresh round of retaliatory tariffs is set to be announced on April 2, further exacerbating trade tensions.
“Until a resolution is reached in this ongoing tariff standoff, gold prices will likely remain on an upward trajectory,” commented Marex consultant Edward Meir.
Additional Factors Supporting Gold’s Growth
Beyond geopolitical concerns, additional factors such as strong central bank purchases and inflows into gold-backed exchange-traded funds are expected to sustain the metal’s impressive rally. As uncertainty looms over global markets, gold remains a favored asset for investors seeking stability and long-term security.
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