Gold Prices Surge Amid Tariffs and Economic Uncertainty
Gold futures reached record highs on Friday, fueled by bullish calls from Goldman Sachs analysts. The analysts cited the potential impact of looming US tariffs against Mexico and Canada.
"Elevated US policy uncertainty underscores the diversifying role of commodities in investment portfolios," Goldman Sachs analysts wrote. "We continue to identify value in long gold as a hedge against potential tail risks, including tariff escalations and US debt concerns."
Gold bullion futures surpassed $2,860 per ounce on Friday, marking the fifth consecutive week of gains.
President Donald Trump's announcement of imminent tariffs on Mexico, Canada, and China has raised concerns about a potential trade war and its impact on economic growth.
"Tariff escalations would amplify investor appetite for gold, augmenting the underlying support for prices," Goldman analysts noted.
Despite the Federal Reserve's decision to maintain interest rates, gold prices have rallied approximately 6% year-to-date. The precious metal benefited from robust demand from central banks and inflows into gold-backed exchange-traded funds (ETFs).
"Our recommendation for long gold remains our firmest conviction across commodities," said Goldman analysts. "Structural factors (central bank purchases) and cyclical factors (ETF inflows) continue to drive our $3,000 per troy ounce price target for the second quarter of 2026."