Gold prices soared to new heights on Monday, driven by escalating trade tensions and investor demand for safe-haven assets. The precious metal reached a record $3,160 per ounce before pulling back slightly, yet remains up more than 18% in the first quarter—marking its strongest quarterly gain since 1986.

Trade War Fears and Inflation Drive Gold’s Surge

Spot gold also climbed above $3,127 per ounce as markets braced for a new round of reciprocal tariffs expected from the Trump administration. Institutional investors have been ramping up gold shipments to the U.S. in anticipation of potential levies on metals.

Additional market factors have fueled the rally, including persistent inflation concerns and weakening consumer sentiment. A declining U.S. dollar has further supported gold’s upward trajectory, while stocks on the S&P 500 and Nasdaq have faced significant sell-offs.

Analysts See Higher Gold Prices on the Horizon

Wall Street analysts have raised their gold price forecasts in response to the metal’s rapid appreciation. Bank of America projects gold could hit $3,500 per ounce within 18 months, citing increased investment from China, central bank purchases, and growing demand for physically backed ETFs.

JPMorgan analysts have even questioned whether gold could reach $4,000 sooner than expected, noting its accelerated price gains. Over the past 210 days, gold surged from $2,500 to $3,000—far faster than previous $500 jumps, which historically took an average of 1,700 days.

“With each $1,000 phase taking significantly less time, and considering investors’ preference for round numbers, could $4,000 be within reach?” JPMorgan analysts speculated.

Market Risks and Potential Entry Points

Goldman Sachs analysts maintain a bullish outlook but caution that two major events could present better buying opportunities. A Russia-Ukraine peace deal, for instance, could trigger speculative selling. However, they also emphasize that the freezing of Russian central bank assets has reinforced long-term demand for gold among global central banks.

As gold continues its meteoric rise, investors remain focused on geopolitical risks, economic policy shifts, and inflationary pressures that could shape its future trajectory.

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