Gold price blasts through $3,100 for new record high

Gold blasted through the $3,100-an-ounce mark on Monday as concerns around US President Donald Trump’s barrage of tariffs and the potential economic fallout drove a fresh wave of investments into the safe-haven asset.

Spot gold set another all-time high of $3,126.97 per ounce during the morning trading, having already hit multiple records last week in the lead-up. By 10:30 a.m. ET, it pulled back to around $3,113.57 for a 1.0% gain.

Gold futures followed a similar pattern, having gained as much as 1.4% to $3,160.70 per ounce in New York before falling to $3,146.30 per ounce.

The rally takes bullion’s gains for the year to 18%, as investors continue to hedge against economic instability, geopolitical tensions and inflation in Trump’s second stint in office. Earlier this month, gold breached the pivotal $3,000-per-ounce mark for the first time, a reflection of the metal’s value during turbulent times.

Several major banks have already raised their price targets for the yellow metal on the back of its surging safe-haven appeal. Last week, Goldman Sachs upped its year-end forecast to $3,300 an ounce, but also cited an “extreme scenario” under which gold could even reach $4,500. Bank of America’s target of $3,063 has already been surpassed, while the UBS target of $3,200 is in sight.

“For now, gold’s appeal as a safe haven and inflation hedge has further strengthened in light of these geopolitical concerns and tariff uncertainty. We remain constructive on the outlook of gold amid ongoing global trade friction and uncertainty,” said analysts at OCBC.

“Tariff issues will continue driving (gold) prices higher until there is some finality to the tit-for-tat campaign,” Marex consultant Edward Meir said.

Additional factors, like robust central bank demand and exchange-traded fund inflows, will also continue supporting gold’s stunning rally this year, analysts and investment banks say.

(With files from Reuters)