Gold Soars to New Highs Amidst Global Uncertainties
Gold futures (GC=F) reached an intraday high of $2,973 per ounce on Thursday, driven by escalating geopolitical tensions, trade war concerns, and speculation over U.S. gold reserves.
Trade War Escalation
President Donald Trump's announcement of tariffs on automobiles, semiconductors, and pharmaceuticals has raised fears of a trade war. Market analysts anticipate retaliatory measures from other countries, which could contribute to inflation and increase demand for gold as a safe-haven asset.
Ukraine-Russia Conflict
Uncertainty surrounding the ongoing conflict in Ukraine has also fueled gold prices. Trump's recent comments about withdrawing support for Ukraine and urging their president to act swiftly on peace agreements have added to market volatility and heightened demand for bullion.
U.S. Gold Reserves Verification
Trump's remarks about verifying gold reserves stored at Fort Knox have sparked speculation regarding the potential revaluation of the U.S. gold holdings. Market participants speculate that a potential increase in the value of these reserves could push gold prices even higher.
Central Bank Demand
Central banks, particularly China, remain significant buyers of gold. Goldman Sachs analysts have raised their year-end 2025 gold price forecast to $3,100 per troy ounce, citing structurally higher central bank demand.
Speculative Positioning
Policy uncertainty and trade war fears could prolong speculative positioning in gold, potentially driving prices to $3,300 per ounce by the end of the year, according to Goldman Sachs.