Gold Surges to Record Highs Amid Rising Tariff Threats
Gold prices soared to a record high on Monday, surpassing $2,900 per ounce, driven by escalating trade tensions and continued bullish sentiment among Wall Street analysts.
Key Points:
* Gold futures surged over 1.6% to $2,935, setting a new all-time high.
* President Trump's threats to impose additional tariffs on steel and aluminum imports and retaliatory measures against countries targeting US goods have spurred safe-haven buying.
* Analysts remain optimistic about gold's outlook, citing its effectiveness as a portfolio hedge and diversifier.
* Goldman Sachs analysts believe gold could reach $3,000 per troy ounce due to persistent policy uncertainty and increased central bank and investor demand for hedging.
* JPMorgan analysts warn of potential short-term fluctuations but maintain a bullish stance in the medium term, with a year-end target of $2,950 per ounce.
* Gold demand reached record levels in 2024, driven by central bank purchases and the Federal Reserve's rate-cutting cycle.
* Gold has gained nearly 10% year-to-date, building on a 27% surge in 2024.