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Gold has been on an upward trajectory for some time, thanks to President Donald Trump’s latest round of tariffs. Goldman Sachs (GS) said the rally is set to continue, raising its year-end price target to $3,100 per ounce from $2,890. The metal hovered just below $2,900 in New York spot trading on Tuesday.
The bank also predicted that if policy uncertainty — particularly tariff-related concerns — remains elevated, prolonged speculative positioning could drive prices as high as $3,300 per ounce by year-end.
Structurally higher central bank demand — fueled by growing concerns about U.S. debt sustainability — and a gradual increase in ETF holdings will support price gains, Goldman strategist Lina Thomas said in a note to clients. “We reiterate our ‘Go for Gold’ trading recommendation,” she wrote.
Read more: 5 sectors facing price hikes from Trump’s new steel and aluminum tariffs
Trump’s tariffs have escalated global tensions, prompting investors to seek safe havens. As a result, gold soared to a fresh all-time high earlier this month, approaching a record $3,000. Gold exchange-traded funds also reached an all-time high after their longest winning streak since 2020.