Gold's All-Time High Fueled by Geopolitical Tensions and Uncertainty
Gold prices surged to a record high on Thursday, supported by ongoing geopolitical concerns, trade war risks, and President Trump's statements regarding the verification of US gold reserves.
Gold futures (GC=F) reached an intraday peak of $2,973 per ounce before easing slightly. Cash market gold surpassed $2,954 an ounce, also setting a new record.
Apprehensions about an escalated trade war following Trump's announcement of tariffs on various products have fueled demand for gold as a safe haven asset. Analysts anticipate retaliatory measures from other countries, which could drive inflation and further entice investors towards gold.
Uncertainty surrounding peace negotiations in Ukraine has also contributed to the upward pressure on gold prices. President Trump's comments insinuating reduced support for Ukraine have raised fears of a prolonged conflict.
Trump's suggestion to verify US gold reserves at Fort Knox has also fueled speculation of higher gold prices. Potential revaluation of these reserves from $42 per ounce to current market prices could increase transparency and further drive up the gold price.
Analysts at Goldman Sachs have increased their year-end 2025 gold price forecast to $3,100 per troy ounce, citing increased demand from central banks, primarily China. They predict that ongoing policy uncertainty, including trade concerns, could potentially push prices as high as $3,300 per ounce by year-end.