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Gold Prices Hover Near Record Highs as Trade Tensions Persist

Global uncertainty over tariffs and economic policies fuels demand for gold, with analysts projecting further price increases by year-end.

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FILE PHOTO: Gold bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. REUTERS/Angelika Warmuth/File Photo/File Photo
This is because non-yielding gold has traditionally been viewed as a hedge against economic uncertainty and inflation.
Donald Trump's presidency has been a blessing for gold bugs now profiting from the uncertain economic outlook sparked by his administration's trade war.

Overview

  • Gold is trading between $3,237 and $3,245 per ounce, with technical analysis suggesting a near-term target of $3,380.
  • President Trump's temporary tariff exemptions on tech products introduced volatility, but investors remain cautious about his inconsistent trade policies.
  • Central banks and institutional investors continue to drive demand, with record inflows into gold-backed ETFs and robust purchases to diversify reserves away from the U.S. dollar.
  • Analysts, including Goldman Sachs, have raised their year-end gold price forecast to $3,700, citing recession risks and strong safe-haven demand.
  • The weakening U.S. dollar and fears of a prolonged trade war, particularly with China, are bolstering gold's appeal as a hedge against economic instability.