Gold Rises as Goldman Raises Year-End Target on Tariff Concerns
Gold rose as Goldman Sachs Group Inc. said prices would rise to $3,100 an ounce by year-end, while suggesting that rising tariff concerns could push it even higher.
Bullion traded above $2,900 after rising for a second day on safe-haven demand, amid tensions between the U.S. and the European Union. Bloomberg News reported that the U.S. government has asked European countries to explain what security guarantees they are willing to provide to Ukraine as part of a peace settlement. The move follows Trump’s push to start talks with Russia’s Vladimir Putin.
Investors are also awaiting further insight into Trump’s reciprocal tariff plan, a complicated effort that could take months. Its trade has become increasingly chaotic due to delays and exceptions, with concerns about the impact on global economic policy helping bullion’s role as a store of value. “If heightened policy uncertainty — including tariff fears — persists, speculative positioning could push gold prices as high as $3,300 an ounce by year-end,” Goldman analysts Lina Thomas and Daan Struyven said in a note.
Monetary policy is also in focus. Federal Reserve Chairman Christopher Waller said recent data supports keeping interest rates on hold, in remarks he is scheduled to deliver Tuesday in Sydney. On Monday, Philadelphia Fed Bank President Patrick Harker said policy is well-positioned as officials await more progress in inflation. Lower borrowing costs tend to benefit gold. Read More: Trump Rushes Toward Deal With Putin as Europe Leaves in the Dust
The commodity has performed well since the turn of the year, posting seven weekly gains — its longest winning streak since 2020 — and hitting back-to-back records, including an all-time high of $2,942.68 an ounce last week. In addition to the boost from the reaction to Trump’s policies, the metal has been helped by sustained buying by central banks, including China, and inflows into bullion-backed exchange-traded funds.
Spot gold rose 0.5% to $2,911 an ounce as of 1:07 p.m. in Singapore. The Bloomberg Dollar Spot Index rose 0.3%. Silver and palladium rose, while platinum was flat.
Source: Bloomberg
