Gold hits new all-time high due to inflation fears, bullish trend remains

From Yahoo Finance: 2025-04-01 12:52:00

Wall Street remains bullish on gold as it hits another all-time high, with futures surging above $3,170 per ounce before President Trump’s tariff plan announcement. JPMorgan analysts view gold as a hedge against risky markets, noting its rapid rise and best quarterly performance in nearly 40 years.

Gold prices have soared from $2,500 to $3,000 per ounce in just 210 days, a much faster pace than previous increments. Year-to-date prices are up 19%, and over the past year, the commodity has risen over 40%. Societe Generale researchers note that gold has become a momentum trade driven less by fundamentals and more by momentum.

Goldman Sachs analysts raised their year-end price target to $3,300, citing ETF inflows and strong central bank demand. Potential events like a Russia-Ukraine peace deal or an equity sell-off could spark selling, creating entry points for investors. President Trump’s announcement on reciprocal tariffs may impact near-term price action in the market.

Read more: Gold rises to new high on tariff, inflation worries with bullish trend ‘firmly intact’