Gold prices surged to an all-time high on Monday, surpassing $3,100 per ounce, as investors sought safety amid escalating global trade tensions and geopolitical uncertainty.
Spot gold climbed 0.9% to $3,110.81 an ounce as of 0444 GMT, after reaching a record high of $3,115.79 earlier in the session. Futures on the New York Mercantile Exchange rose 1.3% to $3,153 per ounce after briefly touching $3,159.30. The precious metal has gained more than 19% so far this year, driven by growing concerns over inflation and slowing economic growth.
A widening trade dispute fueled by US President Donald Trump’s latest tariff measures has intensified investor uncertainty. Last week, Trump imposed 25% tariffs on all imported cars and trucks and is expected to announce additional reciprocal tariffs on April 2.
“The only near-certainty is that the effective US tariff rate is heading to its highest level since the 1940s,” said Neil Shearing, chief economist at Capital Economics. “That means rising inflation in the US and growing economic risks for its key trading partners.”
Gold’s appeal as a safe-haven asset has also been bolstered by geopolitical developments. Trump warned on Sunday that he might impose secondary tariffs of 25% to 50% on buyers of Russian oil, citing frustration with Russian President Vladimir Putin. The remarks added to existing concerns over potential disruptions in global energy markets.
The dollar index (.DXY) eased 0.2%, making dollar-priced gold more attractive to international buyers. Other precious metals also gained, with silver rising 0.7% to $34.35 an ounce, platinum remaining steady at $984.07, and palladium climbing 0.5% to $976.72. All three metals are on track for monthly gains.
Major banks have revised their gold price forecasts upward, citing sustained demand from central banks and exchange-traded fund (ETF) inflows. Goldman Sachs now projects gold will reach $3,300 per ounce by the end of the year, up from its previous forecast of $3,100.
“Gold is one of the best-performing major commodities this year, driven by trade frictions, economic uncertainty, central bank buying, and ETF inflows,” ING strategists Ewa Manthey and Warren Patterson said. “We see uncertainty over trade and tariffs continuing to buoy gold prices.”
With investors closely monitoring upcoming trade policy developments, analysts suggest that gold prices could remain volatile in the near term.
“If the tariff announcements this week are not as severe as feared, then the gold price could start to backtrack as profit-taking from the highs may be triggered,” said Tim Waterer, chief market analyst at KCM Trade.
Reuters and the Wall Street Journal contributed to this report.
