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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+0.34%) 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.