Gold Surges to Record High Amid Geopolitical Tensions and Economic Uncertainty
Gold futures (GC=F) reached an intraday high of $2,973 per ounce on Thursday, setting a new all-time record just shy of $3,000. The surge is driven by ongoing geopolitical risks, tariff concerns, and speculation surrounding US gold reserves.
President Trump's announcement of impending tariffs on autos, semiconductors, and pharmaceutical products has escalated trade war fears. This has prompted expectations of retaliatory measures from other countries, which could lead to inflation and drive investors towards safe-haven assets like gold.
Uncertainty over the conflict in Ukraine-Russia has also contributed to the gold rally. Trump's recent comments suggesting he may withdraw support for Ukraine have increased concerns about the stability of the region.
Additionally, Trump's announcement that he plans to verify the gold reserves at Fort Knox has fueled speculation that the US may revaluate its gold holdings. This could lead to increased transparency and push gold prices higher.
Goldman Sachs has raised its year-end 2025 gold price forecast to $3,100 per troy ounce, citing structurally higher central bank demand, particularly from China. The bank estimates that this demand will add 9% to gold prices by year-end.
However, Goldman warns that if policy uncertainty and tariff fears persist, speculative positioning could push gold prices as high as $3,300 per ounce by year-end.