Gold prices hit a record high of $3,534 an ounce, driven by economic concerns, geopolitical tensions, and tariffs on gold bars. Analysts attribute the rally to three catalysts. The US is classifying gold bars under a customs code, subjecting them to tariffs, which has surprised markets expecting an exemption.
Geopolitical tensions between the US, Russia, and China are fueling gold’s rally. Trump’s efforts to broker a peace deal between Russia and Ukraine, along with trade deal uncertainties with China, have heightened market dynamics. Investors fear stagflation as job growth weakens and inflation rises, supporting gold as a safe-haven asset.
Wall Street forecasters are bullish on gold, with Goldman Sachs lifting its year-end forecast to $3,700. Market veteran Ed Yardeni believes gold could climb to $4,000 by the end of 2025. Uncertainty surrounding Trump’s tariffs and economic concerns continue to support gold’s upward momentum.
Read more at Yahoo Finance: 3 reasons gold broke through another fresh record high