Gold surges past $3,100 as US tariffs, uncertainty propel safe-haven flows

Bullion's rally has prompted multiple banks to increase their price forecasts for gold this year.

"For now, gold's appeal as a safe haven and inflation hedge has further strengthened in light of these geopolitical concerns and tariff uncertainty. We remain constructive on the outlook of gold amid ongoing global trade friction and uncertainty," said analysts at OCBC.

Goldman Sachs, Bank of America and UBS have all raised their price targets for the yellow metal this month, with Goldman forecasting gold to hit $3,300/oz by the end of the year, up from $3,100. BofA expects gold to trade at $3,063/oz in 2025 and $3,350/oz in 2026 - an increase from its previous forecasts of $2,750/oz for 2025 and $2,625/oz for 2026.

Trump has floated plans for a series of new tariffs aimed at protecting U.S. industries and reducing trade deficits since he took office, including a 25% tariffs on imported cars and auto parts, as well as an additional 10% on all imports from China. He intends to announce a fresh set of reciprocal tariffs on April 2.

"Tariff issues will continue driving (gold) prices higher until there is some finality to the tit-for-tat campaign," Marex consultant Edward Meir said.

Additional factors, like robust central bank demand and exchange-traded fund inflows, will also continue supporting gold's stunning rally this year, analysts and investment banks say.