Jamie Spencer
Record high driven by Trump policies and geopolitical turmoil
Gold prices surged to an all-time high on Monday, topping $3,100 per ounce for the first time amid fears over U.S. President Donald Trump’s tariff strategy and growing global instability.
Spot gold reached $3,106.50 as investors poured into safe-haven assets, spooked by uncertainty over escalating trade tensions and a looming wave of reciprocal tariffs set to be announced April 2. The metal has now risen over 18% year-to-date, breaking past the psychological $3,000 mark earlier this month.
Analysts and banks raise forecasts
Analysts say the rally reflects widespread anxiety about economic and geopolitical conditions. OCBC analysts noted that gold’s appeal “as a safe haven and inflation hedge has further strengthened” in the current environment.
Multiple major banks have raised their gold forecasts. Goldman Sachs now projects gold will hit $3,300 by year-end, up from $3,100. Bank of America expects prices to reach $3,063 in 2025 and $3,350 in 2026. UBS has also revised its targets upward in recent weeks.
Trump’s tariff plans—most notably the 25% tariff on imported cars and auto parts and a 10% blanket tariff on Chinese goods—have intensified fears of global trade disruption. He plans to unveil a sweeping reciprocal tariff regime this week.
Tariffs, central banks and ETF flows fuel rally
“Tariff issues will continue driving prices higher until there is some finality to the tit-for-tat campaign,” said Edward Meir of Marex.
Beyond trade policy, gold’s rally has been underpinned by robust central bank demand and accelerating ETF inflows, signaling broader institutional appetite for the metal as a store of value amid uncertainty.
