Gold prices remained near record highs on Monday as investors weighed ongoing economic growth concerns in the United States and sought safe-haven assets. The metal surged past $3,000 an ounce last week, with analysts predicting further gains in the near term.
According to Bloomberg, spot gold traded around $2,990 an ounce after briefly touching an all-time high of $3,005 an ounce. The rally came after the U.S. Senate approved a Republican-led spending plan, clearing the way for a broader government funding package and averting a shutdown.
Market Reactions and Economic Uncertainty
Investors continue to monitor the impact of President Donald Trump’s aggressive trade policies. The S&P 500 index experienced a correction last week before rebounding on Friday, concluding a volatile period marked by tariff escalations, recession fears, and geopolitical negotiations over Ukraine.
The uncertainty has fueled demand for gold, which has risen 14% so far in 2025, extending its strong performance from the previous year. Major banks have raised their price forecasts, with Macquarie Group predicting gold could reach $3,500 an ounce in the second quarter. BNP Paribas SA also revised its outlook, expecting average prices to remain well above the $3,000 mark.
Focus on Central Bank Policies
Investors are closely watching upcoming central bank meetings this week, as policymakers assess the economic impact of Trump’s trade measures. Federal Reserve Chairman Jerome Powell faces the challenge of reassuring markets that the U.S. economy remains stable while signaling potential interventions if necessary.
As of 8:22 a.m. in Singapore, spot gold edged up 0.2% to $2,988.58 an ounce, following a 2.6% gain last week. Meanwhile, the Bloomberg Spot Dollar Index remained unchanged. In other precious metals, silver saw little movement, while platinum and palladium declined.
Related topics:
- India Surpasses China in Gold Purchases, Buying 51% More in Three Months
- Qilu Bank Enhances Support for Small Businesses with Innovative Financial Tools
- Bitcoin Poised for a Surge Amid Gold’s Delivery Delays, Expert Claims
