Gold Surges Past $3,100 as US Tariffs and Uncertainty Drive Safe-Haven Demand
Gold prices soared beyond $3,100 per ounce for the first time on Monday, fueled by concerns over US tariffs and economic uncertainty.
- Fears surrounding President Donald Trump’s trade policies and potential economic repercussions have led investors to flock to safe-haven assets.
- Geopolitical tensions have further strengthened gold’s appeal, driving fresh investments into the precious metal.
Gold Hits Record High Amid Strong Rally
Spot gold prices touched an all-time high of $3,106.50 per ounce, extending a strong upward trend.
- So far in 2025, gold has gained more than 18%, reflecting its growing status as a hedge against economic and geopolitical risks.
- Earlier this month, it surpassed the psychological $3,000 mark, signaling deepening concerns over inflation and global market instability.
Banks Raise Gold Price Forecasts
Gold’s rally has prompted major financial institutions to increase their price projections for the metal.
- Analysts at OCBC believe gold’s safe-haven demand and inflation-hedging appeal will remain strong amid global trade uncertainties.
- Goldman Sachs, Bank of America (BofA), and UBS have all revised their gold price targets upward.
- Goldman now expects gold to hit $3,300 per ounce by year-end, while BofA projects $3,063 for 2025 and $3,350 for 2026, significantly higher than previous estimates.
US Tariff Policies Add to Market Uncertainty
Gold’s surge comes as Trump plans new tariffs aimed at protecting US industries and reducing trade deficits.
- Proposed measures include a 25% tariff on imported cars and auto parts, along with a 10% tariff on all Chinese imports.
- A fresh set of reciprocal tariffs is expected to be announced on April 2, further escalating trade tensions.
- Edward Meir, a consultant at Marex, stated that gold prices will continue rising until trade disputes reach a resolution.
Central Bank Demand and ETF Inflows Support Rally
Aside from trade issues, strong central bank buying and rising exchange-traded fund (ETF) inflows have further fueled gold’s historic surge.
- Global central banks have boosted their gold reserves, reinforcing its role as a key monetary asset.
- Analysts believe these factors will continue driving gold prices higher throughout 2025, sustaining its impressive rally.
Gold Price Trends Over the Last 25 Years (2000-2025)
Gold has experienced significant price fluctuations over the past 25 years, driven by economic crises, inflation, geopolitical events, and monetary policies. Here’s a breakdown of key trends:
2000-2010: Slow Growth to Financial Crisis Boom
- 2000-2005: Gold traded in the range of $250-$450 per ounce, as global markets remained relatively stable.
- 2006-2008: Prices started rising, crossing $1,000 per ounce in 2008, driven by the US housing crisis and recession fears.
- 2009-2010: The 2008 financial crisis triggered a surge in gold as a safe-haven asset, pushing it to $1,400 per ounce by 2010.
2011-2015: Peak and Subsequent Decline
- 2011: Gold hit an all-time high of $1,920 per ounce in September, amid fears of a global recession and loose monetary policies.
- 2012-2013: As the US Federal Reserve signaled an end to stimulus measures, gold prices declined sharply, falling below $1,200 per ounce by 2013.
- 2014-2015: Prices remained weak, fluctuating between $1,100 and $1,300 per ounce, as economic recovery reduced gold’s appeal.
2016-2020: Renewed Demand and Pandemic Surge
- 2016-2018: Gold showed moderate gains, trading between $1,200-$1,350 per ounce, supported by Brexit, US-China trade war, and global economic uncertainty.
- 2019: Gold prices crossed $1,500 per ounce, driven by slowing global growth and Federal Reserve rate cuts.
- 2020: The COVID-19 pandemic led to a massive rally, pushing gold to a record high of $2,075 per ounce in August, as investors sought safe-haven assets.
2021-2025: Inflation, Interest Rates, and New Highs
- 2021-2022: Gold fluctuated between $1,700-$2,000 per ounce, impacted by rising interest rates and the Russia-Ukraine war.
- 2023-2024: Persistent inflation concerns and central bank buying drove gold to new highs, crossing $2,500 per ounce.
- 2025: Gold surged past $3,100 per ounce, fueled by US tariffs, economic uncertainty, and geopolitical tensions, with forecasts suggesting further gains.
Gold’s historical trend shows that it thrives during economic instability, inflationary pressures, and geopolitical crises, making it a long-term safe-haven asset.
