Gold tops ₹92,100 amid Trump tariffs and geopolitical fears
What's the story
Gold prices have hit record highs, crossing $3,100 per ounce for the first time.
The surge is largely attributed to fears over US President Donald Trump's tariffs and their potential economic impact.
The geopolitical tensions have also led to a massive influx of investments into gold, which is viewed as a safe-haven asset.
Earlier this month, gold prices crossed the $3,000 per ounce mark for the first time.
Market response
Gold's resilience amid global economic uncertainties
Gold has risen over 18% this year, proving its worth as a hedge against economic and geopolitical uncertainties.
The recent spike in gold prices has led a number of banks to revise their price forecasts for the precious metal.
Analysts at OCBC said, "For now, gold's appeal as a safe haven and inflation hedge has further strengthened in light of these geopolitical concerns and tariff uncertainty."
They remain bullish on gold's future amid continued global trade friction and uncertainty.
Forecast adjustments
Major financial institutions revise gold price forecasts
Goldman Sachs, Bank of America, and UBS have all revised their price targets for gold this month. Goldman Sachs predicts gold will reach $3,300/oz by the end of the year.
Bank of America anticipates gold trading at $3,063/oz in 2025 and $3,350/oz in 2026—up from its earlier forecasts of $2,750/oz for 2025 and $2,625/oz for 2026.
The revisions reflect growing confidence in gold's future value amid global economic uncertainties.
Price influences
Factors driving gold prices higher
Tariff issues are likely to keep pushing gold prices higher until there's some resolution to the ongoing trade tensions.
Marex consultant Edward Meir said, "Tariff issues will continue driving (gold) prices higher until there is some finality to the tit-for-tat campaign."
Strong central bank demand and inflows into exchange-traded funds are also expected to support gold's impressive rally this year.