Gold prices surged to a record high, driven by investor concerns over inflation and geopolitical uncertainty.
U.S. gold futures climbed 1.2% to $2,972.10. Bullion has gained 12% this year, fueled by fears of a global trade war triggered by U.S. President Donald Trump’s tariff policies.
Trump has already imposed tariffs on Chinese imports, steel, and aluminum, with plans to extend duties to lumber, cars, semiconductors, and pharmaceuticals. Market analysts see gold nearing the $3,000 mark as a hedge against rising inflation and economic uncertainty.
Despite the Federal Reserve’s cautious approach to rate cuts, central banks continue strong gold purchases, supporting bullish sentiment. Goldman Sachs has raised its year-end target to $3,100 per ounce, citing ongoing central-bank demand.
Geopolitical risks, including Trump’s warnings that Ukraine must secure a peace deal or risk losing its sovereignty, have further boosted gold’s appeal as a safe-haven asset. However, a potential peace agreement between Russia and Ukraine could ease safe-haven demand, potentially slowing gold’s rally.