Gold prices soared to a new all-time high on Thursday, surpassing the $2,950 per ounce level as investor demand for the precious metal intensified.
Concerns over US President Donald Trump’s latest tariff threats and their potential impact on global trade have fueled this rally, reinforcing gold’s status as a safe-haven asset.
Spot gold climbed 0.7% to $2,953.12 per ounce as of 08:53 GMT, after reaching a session peak of $2,954.69—marking the tenth record high this year. US gold futures also gained, rising 1.2% to $2,970.70 per ounce.
So far in 2025, gold has appreciated by 12%, reflecting heightened investor uncertainty amid geopolitical and economic instability. Independent analyst Ross Norman noted that the metal is inching closer to the highly anticipated $3,000 mark, stating:
“The $3,000 level seems to be having a magnetic effect on the market. Even though the market appears technically overbought, it seems determined to crack that magic level.”
Trump announced on Wednesday that he would impose new tariffs on lumber, automobiles, semiconductors, and pharmaceuticals within the next month. Since taking office, his administration has already implemented a 10% tariff on Chinese imports and a 25% tariff on steel and aluminum.
The escalating trade tensions have raised concerns among investors and policymakers. Minutes from the Federal Reserve’s latest policy meeting indicated worries about inflationary pressures, leading the central bank to hold off on further interest rate cuts. Some analysts believe the combination of trade policies and inflation concerns will continue to drive gold prices higher.
Given the sustained rally, financial institutions have revised their gold price forecasts. Goldman Sachs now predicts gold will reach $3,100 per ounce by the end of 2025, while UBS and Citi have adjusted their short-term targets to $3,000 per ounce.
Market strategist Yeap Jun Rong of IG noted that while potential peace talks between Ukraine and Russia could cause temporary pullbacks in gold prices, the overall trajectory remains upward. Investors are increasingly seeking refuge in gold amid ongoing economic and geopolitical challenges.
The surge in gold prices has also influenced other precious metals. Spot silver rose 0.9% to $33 per ounce, platinum edged up 0.3% to $974.85 per ounce, and palladium advanced 1.4% to $981.70 per ounce.
As global uncertainties persist, investors continue to turn to gold, driving demand and pushing prices to new highs. The question now appears to be not if gold will reach $3,000 per ounce, but when.
