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Gold prices are soaring due to US-China trade tensions and fears of a recession. Goldman Sachs and UBS predict further increases.
Gold is hitting record highs in recent times as central banks are hoarding the yellow metal as a safe hedge
Gold Price Outlook: the saying goes, “you can’t eat gold, but when the world burns, you’ll wish you had some.” With rising macroeconomic uncertainty and escalating trade tensions between China and the United States, driven by Donald Trump’s new tariffs, gold prices are continuously reaching new highs. Central banks are increasingly hoarding gold as the trade war intensifies and fears of a US recession peak.
Goldman Sachs and UBS Group AG believe that the value of gold remains strong and expect prices to increase further by 2025 due to its role as a hedge against recession and geopolitical risks, along with stronger-than-expected central bank demand.
Goldman analysts, including Lina Thomas, predict that gold will rise to $3,700 an ounce by the end of this year and reach $4,000 an ounce by mid-2025
Meanwhile, UBS strategist Joni Teves forecasts gold hitting $3,500 an ounce by December 2025, according to separate notes released on Friday.
According to goldprice.org, gold was trading at $3,223.91 per ounce with a slight decline. Since the US announced a pause on new tariffs, the price has risen from below $3,000 per ounce, gaining almost 8 percent in less than 30 days.
“The case for adding gold allocations has become more compelling than ever in this environment of escalating tariff uncertainty, weaker growth, higher inflation, and lingering geopolitical risks,” UBS strategist Joni Teves noted.
Teves added that the changing global trade, economic, and geopolitical landscape is reinforcing gold’s role as a safer investment haven.
On April 02 as part of Liberation Day, US President Donald Trump announced new tariffs up to 90% from 10% base tariff on several nations, shaking up the entire globe. The move rattled the markets across the globe with investors fleeing with their investments and countries hampering to calculate the impact. In the ensuing days, when markets saw stark ups and downs and leaders of nations scramble to negotiate with Trump’s administration, Donald Trump gave a breather by announcing a 90-day pause.
