Gold Prices Hit Record High: $3,100 Ounce
The Price of Gold Hits Historic Peak – What Led to the $3,100 Ounce?
The price of gold has reached another historic peak, surpassing the $3,100 per ounce mark on Monday. The surge in demand for the precious metal is driven by economic and geopolitical uncertainties, prompting more investors worldwide to choose this "safe haven." The price has risen by more than 18% this year, highlighting gold's strengthened position during times of crisis.
What is Driving Up the Price of Gold?
The recent price surge is due to a combination of factors:
US Trade Policy: The former president of the United States proposed new tariffs, including a 25% tariff on cars and car parts and an additional 10% import tariff on goods from China. The threat of a trade war increases global economic tension, boosting gold demand.
Geopolitical Uncertainties: Political tensions around the world, whether concerning war conflicts, diplomatic disputes, or unstable regions, also contribute to the strengthening of gold.
Inflation Concerns: Global inflation continues to put pressure on economies. Gold is a well-established inflation hedge, making it a logical choice for investors once again.
Central Bank Purchases: Central banks worldwide continue to expand their gold reserves, which also pushes prices upward. Concurrently, gold-based exchange-traded funds (ETFs) are experiencing significant capital inflows.
Breaking Psychological Barriers
Earlier this year, gold first surpassed the $3,000 psychological barrier, giving new momentum to investor sentiment. Now that the $3,100 mark has been breached – a new record at $3,106.50 – market attention turns to new price targets.
New Price Forecasts: How Much Higher Can It Go?
Major financial institutions are optimistic about gold's future:
Goldman Sachs predicts that the price could reach $3,300 per ounce by the end of the year.
The Bank of America suggests a price of $3,063 in 2025 and $3,350 in 2026.
These forecasts exceed previous 2025 and 2026 estimates, suggesting further price increases ahead.
What to Expect in the Coming Months?
Analysts suggest that gold prices will continue to be strongly influenced by:
Developments in trade wars and their economic impacts
The pace of central bank purchases
Inflation trends, particularly in light of the dollar's exchange rate
Global market tensions, especially concerning events in the Middle East, Asia, or Europe
Gold thus continues to play a crucial role among investors, particularly for those seeking safety and long-term value preservation amidst volatile equity market conditions. Based on current trends, new historic peaks in the coming period are not out of the question.
