Gold prices surged to an unprecedented high of $3,127.92 per ounce this week, continuing a remarkable bull run that has seen the precious metal gain almost 19% since the beginning of the year. The latest price jump comes as markets react nervously to President Trump’s aggressive trade policies, including a recently signed 25% tariff on auto imports and anticipated “reciprocal tariffs” expected Wednesday.
The gold rally has been sustained by two primary factors: significant buying from central banks worldwide and increased demand for safe-haven assets amid growing geopolitical tensions and economic uncertainties. This upward momentum has persisted even as traders have scaled back their expectations for Federal Reserve interest rate cuts to just two quarter-point reductions this year. Major financial institutions are taking notice, with Goldman Sachs recently raising its year-end price target for gold to $3,300 per ounce, citing stronger-than-anticipated central bank demand and robust inflows into gold-backed ETFs.