Gold price soars to all-time high as Goldman Sachs raises forecast to $3,300

Gold hits record levels amid rising trade tensions and safe-haven demand.

The price of gold surged to a fresh record high on Thursday, driven by escalating global trade tensions and renewed investor appetite for safe-haven assets. Spot gold climbed 1.2% to $3,055.87 per ounce by 11:30 a.m. ET, after hitting a new peak of $3,059.48 earlier in the session. Meanwhile, US gold futures rose 1.5% to $3,068.80, also marking an all-time high.

The rally comes on the heels of US President Donald Trump’s announcement of a 25% tariff on imported vehicles, sparking fears of a global trade war. The move has triggered retaliatory threats from key allies including Canada and France, sending global stock markets into the red and weighing heavily on auto industry shares.

“Looks like we’re going to see gold futures hit $3,100 here shortly,” said Bob Haberkorn, senior market strategist at RJO Futures. “The main catalyst is safe-haven buying amid market uncertainty surrounding Trump’s tariff plans.”

Fed Policy and Inflation Data in Focus

The Federal Reserve’s recent decision to hold interest rates steady — while signaling potential rate cuts later this year — has further supported gold’s upward momentum. All eyes are now on the upcoming US Personal Consumption Expenditures (PCE) data, due Friday, which could influence the Fed’s next move.

“If the PCE data comes out better than expected, it might signal more upside for gold,” Haberkorn added. “A stronger case for rate cuts would provide a tailwind for bullion prices.”

Goldman Sachs Ups Forecast to $3,300

Adding to the bullish sentiment, analysts at Goldman Sachs have revised their year-end price target for gold to $3,300 per ounce. The upgrade reflects increased gold accumulation by central banks — especially in emerging markets — which have purchased over 1,000 tonnes annually for three consecutive years.

“Central banks have significantly increased their gold reserves since 2022, following the freezing of Russian assets,” wrote Goldman analysts Lina Thomas and Daan Struyven. “This marks a structural shift in global reserve management, with no signs of a reversal.”

Goldman had already lifted its forecast earlier this year from $2,890 to $3,100, citing similar factors. Now, with ETF inflows also exceeding expectations, analysts believe prices could rise even further.

“Investor demand for hedges is driving ETF expansion,” said Thomas and Struyven. “If gold-backed ETFs approach the levels seen during the covid-19 pandemic, prices could climb to $3,680 per ounce by year’s end.”

Gold’s Bullish Outlook Strengthens

As geopolitical tensions rise and expectations grow for monetary easing, gold appears poised for continued gains. With major financial institutions like Goldman Sachs turning increasingly bullish, and global central banks reinforcing demand, the precious metal is solidifying its role as a key hedge in an uncertain economic landscape.