Gold surges previous $3,100 as uncertainty over Trump tariffs propel safe-haven flows – Firstpost

Gold costs on Monday soared above $3,100 per ounce for the primary time as issues round U.S. President Donald Trump’s tariffs and the potential financial fallout, mixed with geopolitical worries, drove a contemporary wave of investments into the safe-haven asset.

Spot gold costs hit a file excessive of $3,106.50 per ounce.

Gold costs have hit a number of file highs, gaining greater than 18% to this point this 12 months – capitalising on its cachet as hedge towards financial and geopolitical turbulence.

Earlier this month, it breached the psychological $3,000 per ounce mark for the primary time – a big milestone that consultants say displays rising issues over financial instability, geopolitical tensions and inflation.

Bullion’s rally has prompted a number of banks to extend their worth forecasts for gold this 12 months.

“For now, gold’s attraction as a protected haven and inflation hedge has additional strengthened in mild of those geopolitical issues and tariff uncertainty. We stay constructive on the outlook of gold amid ongoing world commerce friction and uncertainty,” mentioned analysts at OCBC.

Goldman Sachs, Financial institution of America and UBS have all raised their worth targets for the yellow metallic this month, with Goldman forecasting gold to hit $3,300/oz by the top of the 12 months, up from $3,100. BofA expects gold to commerce at $3,063/oz in 2025 and $3,350/oz in 2026 – a rise from its earlier forecasts of $2,750/oz for 2025 and $2,625/oz for 2026.

Trump has floated plans for a collection of latest tariffs aimed toward defending U.S. industries and lowering commerce deficits since he took workplace, together with a 25% tariffs on imported automobiles and auto elements, in addition to an extra 10% on all imports from China. He intends to announce a contemporary set of reciprocal tariffs on April 2.

“Tariff points will proceed driving (gold) costs greater till there’s some finality to the tit-for-tat marketing campaign,” Marex marketing consultant Edward Meir mentioned.

Extra components, like strong central financial institution demand and exchange-traded fund inflows, may also proceed supporting gold’s beautiful rally this 12 months, analysts and funding banks say.