The price surge exemplifies gold's allure amidst the roller-coaster of tariff developments, which has been a hallmark of recent market behavior. Investors have had to navigate varied stances from the US administration regarding tariffs, leading to increased market unpredictability. This climate has driven gold prices up more than 20% over the year, frequently setting fresh records.
As Washington weighs further tariffs across industries like semiconductors, pharmaceuticals, steel, and automotive sectors, market instability is expected to persist. Trump's call for China to restart trade negotiations, combined with a new wave of potential import investigations, keeps markets on edge.
According to leading financial institutions, optimism about gold's potential remains robust. Goldman Sachs forecasts an increase to $US4000 ($6302) per ounce by mid-2026 as investors continue enhancing their gold portfolios through exchange-traded funds, and central banks globally increase their gold reserves. Analyst Luchen Wang from Galaxy Futures Co. underscores gold's stable appeal as a safe haven, particularly in the current climate of geopolitical power struggles.
Another contributing factor to gold's upward trajectory is the anticipated monetary easing in the US, with traders expecting at least three rate cuts from the Federal Reserve this year. Traditionally, lower interest rates benefit gold by reducing the opportunity cost of holding non-yielding bullion.
