Gold Prices Soar to Record Highs Amid Trade Tensions, Forecasts Climb to $3,500
Economic uncertainty and escalating US-China trade tensions fuel record-breaking gold rally, with analysts projecting prices to climb as high as $3,500 per ounce.
US-China tariff war fuels investor flight to safe-haven assets as gold breaches $3,200, with analysts predicting further highs in 2024 and beyond.
Gold Prices Surge as Safe-Haven Demand Grows
Gold prices hit historic highs on Friday, soaring past $3,200 an ounce for the first time amid escalating US-China trade tensions. As global investors scramble for stability, the yellow metal has gained over 22% so far this year, signaling a dramatic shift in market sentiment toward safe-haven assets.
Spot gold rose by 1.4% to $3,217.15 an ounce at 12:11 GMT, after touching a record $3,237.56 earlier in the session. U.S. gold futures climbed even higher, up 1.8% to $3,234.90. Bullion is up nearly 6% just this week alone.
Trade War Sparks Investor Anxiety
At the heart of the rally is the intensifying trade conflict between the United States and China. President Donald Trump’s aggressive tariff policies — including raising duties on Chinese goods to 145% — have shaken global markets. In retaliation, Beijing lifted its tariffs on US imports to 125%, stoking fears of inflation, supply chain disruptions, and a looming global recession.
The resulting uncertainty has driven investors toward gold, traditionally seen as a hedge against economic instability.
Analysts Boost Forecasts as Rally Gains Momentum
UBS analysts, echoing a growing consensus, expect the rally to continue. In a recent note, they predicted gold prices could reach $3,500 per ounce this year and stabilize at elevated levels going forward.
Commerzbank followed suit, raising its year-end forecast from $2,850 to $3,000 per ounce. The bank highlighted surging demand for gold-backed ETFs, with assets under management reaching a record $345.5 billion by the end of March.
Deutsche Bank also updated its projections, forecasting average prices of $3,139 in 2025 and $3,700 in 2026.
Central Banks Add to the Momentum
Adding further support to the rally, central banks—particularly China’s—are increasing their gold reserves. China’s central bank bought gold for the fifth consecutive month in March, lifting its holdings to 73.7 million fine troy ounces, up from 73.61 million the previous month.
Outlook: A Historic Bull Run for Gold
With no resolution in sight for the US-China trade standoff and growing investor concerns over inflation and market volatility, the gold bull market shows little sign of slowing.
As banks revise their forecasts and central banks continue to stockpile reserves, the precious metal may remain on its upward trajectory—potentially reaching or even surpassing the $3,500 mark before year’s end.
