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Gold reaches new record levels

Gold rises amid trade worries and slowdown fears

Gold prices saw a significant increase, reaching $3,137.10 per ounce in Tuesday's trading, marking a 17% increase since the beginning of the year. This rise is attributed to growing fears of a global economic slowdown and uncertainty related to trade policies, especially after US President Donald Trump announced a 25% tariff on imported cars, which increased gold's appeal as a safe haven for investors. Analysts at Bank of America and Macquarie Group expect gold prices to reach $3,500 per ounce in the near future, while Goldman Sachs expects the price to reach $3,300 by the end of the year. These forecasts are based on increased demand from central banks, geopolitical tensions, and expectations of monetary policy easing by the US Federal Reserve.

Factors Influencing Future Gold Movement

In addition to trade tensions, several factors are expected to influence gold prices in the coming period, including:

• Increasing institutional demand: Financial institutions are increasing their investments in gold as a hedge against inflation and economic fluctuations.
• Central bank policies: Central banks continue to purchase gold to bolster their reserves, supporting prices.
• Geopolitical tensions: Escalating trade and political conflicts increase the appeal of gold as a safe haven.

In the short term, gold prices may experience some volatility, especially as markets await further announcements from the US administration regarding tariffs. However, the overall trend appears to be upward, with prices expected to reach higher levels in the coming months.