Gold has hit an all-time high as prices reached above $3,100 with predictions that further rises could occur as markets continue to react to economic uncertainty.
Analysts point to a flight to safety as the ongoing uncertainty around tariffs and rising levels of political turmoil make investors jittery, with the stock markets tumbling. The benchmark S&P 500 is down 4.5% this year as even blue chip stocks have been impacted by international trade wars and inflation fears.
Yesterday, the going price for New York spot gold hit a record $3,122.80 per troy ounce — the standard for measuring precious metals – up 40% from a year ago, and a rise of 19% since the start of 2025. Gold futures also reached a record in trading Monday, hitting close to $3,157.40 an ounce.
“The ongoing uncertainty regarding tariffs has affected equity markets and brought another round of safe-haven buying into the gold market,” David Meger, director of metals trading at High Ridge Futures told Reuters.
According to a note from Deutsche Bank Research this morning, gold prices were up 19% in the first quarter, marking their biggest quarterly gain since 1986.
Hamad Hussain, climate and commodities economist at Capital Economics, said yesterday: “Central banks have been a key part of the rally in gold prices over the past 18 months. Indeed, the World Gold Council estimates that central banks now account for about 20% of total gold demand, almost double their average share between 2011 and 2021.
“Overall, gold’s role as a portfolio diversifier means that central banks will probably remain a large and steady source of gold demand and continue to offset downward pressure on gold prices from a stronger dollar and higher Treasury yields,” he said.
“Given that gold supply is typically inelastic, we think that gold prices will rise to an above-consensus $3,300 per ounce by the end of this year,” he said.
US President Trump is set to announce country-based tariffs on Wednesday, which he has referred to as “Liberation Day”. “Trump’s varying comments on the nature and extent of tariffs have fuelled volatility in markets this month, with fears that an escalating trade war will drive already stubborn inflation higher and weigh on economic growth,” Yahoo Finance said.
Dr Fergal O’Connor, senior lecturer in financial economics in University College Cork, told RTÉ News this morning that Trump’s tariffs will cause prices to “rise everywhere” and that “higher inflation is probably going to be matched with lower growth,” which he said “is really good for gold prices”.
The US Commodity Futures Trade Commission has previously warned people to be wary of investing in gold. Precious metals can be highly volatile, the commission said, and prices rise as demand goes up — meaning “when economic anxiety or instability is high, the people who typically profit from precious metals are the sellers.”