Gold Prices Near Record High as Tariffs, Geopolitical Unrest Drive Demand
Gold prices held steady near record highs, with President Donald Trump’s threat of new tariffs and rising geopolitical uncertainty fueling demand for the safe-haven asset.
Bullion was trading above $2,934 an ounce — just $8 below an all-time high hit last week — after rising 1.4% on Tuesday as U.S. and Russian officials met to discuss the war in Ukraine. The White House also raised the possibility of lifting a series of sanctions aimed at Russia, which have raised deep concerns in Europe and Kyiv.
The U.S. president vowed to impose tariffs on imports of cars, semiconductors and pharmaceuticals of around 25% on Tuesday night, with an announcement due as early as April 2. But there is speculation that the threat is primarily being used as a negotiating tool, with U.S. tariff policy increasingly muddled by delays and exemptions.
Gold has surged 12% this year after gaining more than a quarter in 2024. Goldman Sachs Group Inc. raised its year-end target to $3,100 an ounce, saying stronger-than-expected central bank purchases would be the main driver of prices this year. If broader uncertainty over economic policy persists, including on tariffs, bullion could reach $3,300 on higher speculative positions, he said.
Spot gold fell 0.1% to $2,934.16 an ounce as of 8:06 a.m. in Singapore. The Bloomberg Dollar Spot Index was steady, after rising 0.2% on Tuesday. Silver, platinum and palladium were all little changed.
Elsewhere, Federal Reserve Bank of San Francisco President Mary Daly said monetary policy needs to stay tight until there is more progress on inflation, which she expects to continue to decline over time. Lower borrowing costs tend to benefit gold, since it doesn’t pay interest.
Source: Bloomberg
