Gold prices hit new records this week as economic uncertainty continued to rise. On Wednesday, spot gold reached $3,357.40 per troy ounce. Although it later dipped slightly, the overall trend remains sharply upward.
Federal Reserve Chair Jerome Powell issued a strong warning on tariffs. He stated that President Trump’s new tariffs were “significantly larger” than expected. As a result, concerns over economic growth and inflation increased. Investors quickly turned to safe-haven assets, pushing gold even higher.
Deutsche Bank analysts described the price surge as the “biggest daily jump in two years.” Goldman Sachs responded by increasing its year-end gold forecast. The bank now expects gold to hit $3,700 by December.
Gold prices hit new records following several key global developments. According to Goldman analysts Lina Thomas and Daan Struyven, central bank demand has risen sharply. They also noted growing fears of a recession. The analysts predict gold could trade between $3,650 and $3,950 in the coming months.
Moreover, they estimate a 45% chance of a U.S. recession within a year. If that happens, they expect gold could rise to $3,880 or even $4,500. In addition, bond market stresses are pushing investors toward gold. Analysts believe gold is uniquely positioned to hedge against recession risks.
Earlier this month, gold lost ground after new tariffs were announced on April 2. However, it quickly regained momentum. Many investors liquidated gold to meet margin calls during last week’s stock market selloff. That move caused a temporary dip.
Still, gold prices hit new records as safe-haven demand surged again. UBS raised its gold target to $3,500, citing tariff fears and geopolitical risks. Bank of America matched that forecast. Experts agree that inflation and uncertainty will continue driving demand for gold.
Ultimately, investors see gold as a stable asset in unstable times. As global risks persist, gold remains a top choice for protection.
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