Gold started the week with a fresh record high, ahead of President Donald Trump’s expected next tariff rollout that’s heightened concerns over an economy-hurting global trade war.
Bullion gained as much as 1.4% to $3,127.92 an ounce. Prices have posted four straight weekly gains, supported by growing haven demand amid a risk-off mood for broader markets. Traders are on edge as Trump plans on Wednesday to announce sweeping levies on all of America’s trading partners. Last week, the U.S. leader signed a proclamation to implement a 25% tariff on auto imports.
Physical demand and a favorable macro backdrop are helping to drive gold’s rally, according to Amy Gower, commodity strategist at Morgan Stanley.
Recent investor buying of bars, coins and exchange-traded funds represent “new inflow to gold coming through here and arguably plenty more to go here,” Gower said during an interview with Bloomberg TV. “And then there’s also the macro angle to gold of how does it compete in an investor’s portfolio against rates and equities and bonds.”
Bullion is often the go-to haven in times of economic and political uncertainty. Investor holdings of physically-backed gold ETFs have climbed 6% so far in 2025 after four years of net outflows, according to data compiled by Bloomberg.
Gold is up almost 19% this year in a run that’s seen it clinch at least 15 all-time highs. The rally has been fueled by central-bank buying and haven demand amid rising geopolitical and macro uncertainties. Those drivers have supported prices even as swaps traders have pared bets on Federal Reserve easing this year to two quarter-point rate cuts. Lower rates tend to benefit non-yielding bullion.
Gower expects gold to rise further to $3,300-$3,400 this year, joining several major banks which have raised their price targets for the precious metal. Goldman Sachs Group Inc. this month ramped up its forecast to $3,300 an ounce by year-end. The lender cited higher-than-expected central bank demand and strong inflows into bullion-backed exchange traded funds.
Spot gold was trading at $3,113.72 an ounce as of 10:32 a.m. in New York. The Bloomberg Dollar Spot Index was little changed. Silver dropped, while platinum and palladium both gained.