Gold reached a new all-time high of $3,128.06 per ounce on Monday as investors seek safety amid inflation concerns triggered by upcoming U.S. tariffs. This puts gold on track for its strongest quarter since 1986, with prices already up about 18% this year.
This surge follows gold’s impressive 27% gain in 2023, powered by favorable monetary policies, strong central bank buying, and growing interest in gold-backed ETFs. Despite indicators showing the market is overbought, gold continues its upward momentum.
Analysts point to growing anxiety about President Trump’s trade policies as the main driver, with reciprocal tariffs coming April 2 and auto tariffs on April 3. Adding to market concerns, Trump has threatened tariffs on Russian oil buyers if peace efforts in Ukraine are blocked. WisdomTree strategist Nitesh Shah predicts gold could reach $3,500 next year, even as physical demand in countries like India slows due to the high prices.