Gold futures surged to an all-time high on Friday as escalating trade tensions rattled financial markets.
The Trump administration’s announcement of 25% tariffs on foreign autos sparked fears of a global trade war, pushing investors toward the safety of the precious metal. Gold futures climbed to $3,115.30 per ounce, reflecting a 0.79% increase. Spot gold similarly reached a record $3,086.70 per ounce, marking its eighteenth record high of the year.
The precious metal has gained over 17% in the last quarter, positioning itself for its strongest year-to-date performance in nearly four decades. A weakening US dollar has further bolstered gold’s appeal, with the Dollar Index (DXY) down 2.8% this year.
Wall Street Analysts Boost Gold Forecasts
Financial institutions are increasingly bullish on gold’s outlook. Bank of America (BAC) recently raised its price target to $3,500 per ounce over the next 18 months, citing increased buying from China, central banks, and investors in gold-backed ETFs. Goldman Sachs (GS) followed suit, setting a year-end target of $3,300 per ounce, citing robust demand and ongoing economic uncertainty.
Financial institutions are increasingly bullish on gold’s outlook. Bank of America (BAC) recently raised its price target to $3,500 per ounce over the next 18 months, citing increased buying from China, central banks, and investors in gold-backed ETFs. Goldman Sachs (GS) followed suit, setting a year-end target of $3,300 per ounce, citing robust demand and ongoing economic uncertainty.
JPMorgan (JPM) analysts even suggested that gold could touch $4,000 per ounce, referencing the commodity’s accelerated price movements. They highlighted the rapid jump from $2,500 to $3,000 in just 210 days, significantly faster than previous increments.
Safe-Haven Demand Strengthens
Investors are flocking to gold as a hedge against geopolitical and economic instability. The tariffs have heightened concerns about global trade relations and their impact on the US economy. Additionally, rising gold inventories on the Comex exchange in New York indicate strong institutional demand.
ETFs tracking gold saw record inflows, with investors injecting over $6 billion in the past month alone. Central banks have also bolstered their reserves, further supporting prices. Meanwhile, silver and copper prices have also risen, driven by similar trade war fears and increased industrial demand.
With tariff concerns mounting and interest rate cuts anticipated later this year, gold remains a favored asset for investors seeking stability. However, analysts caution that the metal’s rapid ascent may lead to profit-taking pullbacks, even as its long-term outlook remains positive.
Investors are flocking to gold as a hedge against geopolitical and economic instability. The tariffs have heightened concerns about global trade relations and their impact on the US economy. Additionally, rising gold inventories on the Comex exchange in New York indicate strong institutional demand.
ETFs tracking gold saw record inflows, with investors injecting over $6 billion in the past month alone. Central banks have also bolstered their reserves, further supporting prices. Meanwhile, silver and copper prices have also risen, driven by similar trade war fears and increased industrial demand.
With tariff concerns mounting and interest rate cuts anticipated later this year, gold remains a favored asset for investors seeking stability. However, analysts caution that the metal’s rapid ascent may lead to profit-taking pullbacks, even as its long-term outlook remains positive.
Considering a $1,000 investment in these companies?
Our team at Stock Investor carefully curated a list of top stocks with the potential for significant returns, suitable for beginners and seasoned investors alike who are eager to learn a trade and unearth the best stocks to buy. Though not featured in this article, these selected stocks could be game-changers in the future.For those seeking dynamic trading experiences, consider joining our Swing Trade Alerts, Option Income Alert, or our Trading Room. Take advantage of our special offer today, starting at just $1 in the first month.
Unlock the secrets of Smart Money
Explore how billionaires and institutions are influencing the market. Follow their every move with DarkOption Flow and stay updated on essential market insights. Begin your journey to informed investing today!
Education
And if you're a fan of Invest opedia, you'll appreciate what we offer at SharperTrades even more. Explore our comprehensive option trading course and technical trading course, where you can learn trading, analyze stocks, delve into chart patterns for stocks, and gain invaluable insights for making the best company investments.
Unlock Your Stock Market Edge with SharperTrades. Dive into powerful trading tools, learn a trade, and receive expert guidance. Stay up-to-date with regular market updates. Learn trading, basics of investing, and how to pick the best stocks to buy. Whether you're a beginner or seasoned investor and trader, we've got you covered. Get started for free, today!