Gold prices reached record-breaking levels on Friday, soaring to over $3,100 per ounce, driven by growing concerns over the global trade war. A key factor fueling the surge was President Donald Trump’s new tariff proposal, which includes a 25% tax on car imports to the U.S., heightening fears that trade tensions could escalate further.
Spot gold rose by 0.6%, reaching $3,074.31 per ounce, with an earlier peak of $3,077.44 per ounce during the session. This represents a 1.7% weekly gain, marking gold’s fourth consecutive week of increases.
The recent surge has prompted investment banks to reassess their price forecasts. Goldman Sachs has raised its gold price target to $3,300 by the end of 2025, citing inflationary pressures, central bank policies, and the ongoing tariff volatility under Trump’s administration. Citi also remains bullish, predicting gold to reach $3,200 in the next three months, with a potential settling point of around $3,000 over the next 6-12 months.
However, not all banks are as optimistic. HSBC maintains a more conservative outlook, forecasting gold to hover around $2,620 by the end of 2025. Deutsche Bank is similarly cautious, predicting a decline to approximately $2,725 by the end of the year, followed by a gradual increase to $2,900 by 2026.
As gold continues to climb, it remains a key safe-haven asset for investors amidst the ongoing uncertainty surrounding global trade dynamics.
