Gold reached a record high of $3,120.20 per ounce this week, marking a nearly 20% rise since the start of 2025. This surge is attributed to fears over inflation and slowing economic growth exacerbated by President Trump's import tariffs on 60 countries, which analysts believe will increase US consumer price inflation. Investor concerns also stem from potential tariffs on gold imports and doubts about US public finances. Central banks are accumulating gold as a safeguard against possible US-led financial sanctions, adding to gold's appeal as a safe haven in turbulent times.
Hamad Hussain, climate and commodities economist at Capital Economics, expects the rally to continue. "Gold has arguably become a more attractive asset given the environment of heightened fiscal, inflationary, and geopolitical risks," he said, forecasting that prices could reach $3,300 per ounce by year-end.
The rally has been driven by escalating fears over global inflation and slowing growth, triggered by sweeping US import tariffs on 60 countries. Trump's trade policy is expected to lift consumer price inflation in the US by at least one percentage point over the next three years, according to analysts.
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