Gold prices reached a new all-time high on Thursday, bringing the precious metal closer to the $3,000 mark, a threshold that analysts now believe may be surpassed sooner than expected.
Spot gold (XAUUSD) surged to $2,954.95 per troy ounce on Thursday morning, edging ever closer to the coveted $3,000 level. This latest peak follows a consistent rise in gold’s value, with the metal climbing approximately 13% this year alone.
Gold has long been regarded as a safe-haven asset, particularly in times of economic uncertainty. Analyst optimism surrounding the yellow metal is fueled by growing concerns about the global economic outlook, as well as the potential impact of new U.S. tariffs.
Analysts Predict Continued Growth
Several prominent Wall Street firms have revised their gold price forecasts, pushing them to $3,000 or higher. Goldman Sachs, for example, recently raised its forecast to $3,100 by the end of 2025, citing “structurally higher central bank demand” and a growing investor appetite for safe-haven assets. This revision marks a notable increase from its previous forecast of $2,890.
Earlier this month, ING analysts also predicted that gold could surpass $3,000 in the current first quarter of 2025.
However, not all firms are as optimistic. Morgan Stanley, while acknowledging that gold’s recent rally appears “unstoppable,” forecasts a price drop to $2,700 by the fourth quarter. The firm suggests that a potential peace deal between Russia and Ukraine could reduce the central bank demand that has bolstered gold’s value in recent months.
The Impact of Tariffs on Gold Prices
The Trump administration’s push for widespread tariffs on Canada, Mexico, and China has added to global economic concerns. In this environment of heightened uncertainty, investors increasingly view gold as a valuable asset. Moody’s Analytics, in a recent report, referred to gold as “a perennial hedge against uncertainty.”
Moody’s has projected gold prices could reach $3,000 by the end of 2026, driven by expectations of slow economic growth and the potential risks of worsening conditions, including the threat of recessions in key global markets. Specifically, the firm highlighted the possibility of recessions in Europe and China, which could be exacerbated by retaliatory tariffs.
“Such economic challenges would likely push gold prices even higher,” Moody’s noted, though it emphasized that financial markets currently assign a low probability to such an outcome.
ING analysts also believe that tariff and trade uncertainties will continue to drive gold prices higher. They pointed out that with Donald Trump returning to the White House, the atmosphere of unpredictability remains high, further benefiting gold.
As global economic tensions mount, gold’s appeal as a safe-haven asset shows no signs of waning. Whether it will exceed the $3,000 mark in the near future remains to be seen, but analysts are increasingly confident that the milestone is within reach.
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