Gold Surges to All-Time High Amidst Geopolitical Risks and Market Uncertainty
Gold prices reached a new peak on Thursday, nearing the $3,000 mark, driven by ongoing geopolitical tensions, tariff concerns, and uncertainties surrounding US gold reserves verification.
Gold futures touched an intraday high of $2,973 per ounce before settling slightly lower. Cash market gold exceeded $2,954, surpassing its previous record.
Escalating Trade War Concerns
The surge in gold prices is attributed to escalating trade war worries, with President Trump announcing plans to impose tariffs on autos, semiconductors, and pharmaceuticals. Analysts believe retaliatory measures from other countries could lead to inflation, further boosting gold demand as a safe haven asset.
Ukraine-Russia War and Trump's Comments
Uncertainty over the Ukraine-Russia conflict has also contributed to the price rise. Trump's recent statements suggesting reduced support for Ukraine created additional market volatility.
US Gold Reserves Verification
President Trump's announcement of plans to verify the gold stored at Fort Knox has fueled speculation of higher gold prices. Market participants speculate that a potential revaluation of US gold reserves could increase transparency and drive up prices.
Analyst Forecasts and Outlook
Goldman Sachs analysts have raised their year-end 2025 gold price forecast to $3,100 per troy ounce, citing higher central bank demand. However, they project that prices could reach $3,300 if policy uncertainty, including tariff fears, persists.