Gold prices (GC=F) moved higher again after setting a new record of $3,148.8 an ounce yesterday, as investors rush into safe assets.
Spot gold rose 0.1% to $3,128.13 per ounce, while gold futures climbed 0.2%% to $3,153.40.
“The market could test $3,400/oz over the next nine months in a bull case scenario,” said Aakash Doshi, global head of gold strategy at State Street Global Advisors.
According to the Washington Post, Trump plans to impose a 20% tariff on most goods imported to the US, a move that could escalate inflation, dampen economic growth, and worsen global trade disputes.
Newman also pointed to a potential US economic slowdown, the prospect of higher inflation, and interest rate cuts as factors that could drive gold prices to $3,300 in the coming months.
Gold’s rally has been further fuelled by robust central bank demand, expectations of interest rate easing by the Federal Reserve, and geopolitical instability, particularly in the Middle East and Europe. Increased investments into gold-backed exchange-traded funds (ETFs) have provided further support for the metal.
Gold, long seen as a hedge against political instability and inflation, continues to attract investors looking for a safe haven amid uncertainty.