Gold Hits 19th Record as Traders Await Tariff Plan
Gold futures (GC=F) surged above $3,170 per ounce on Tuesday, marking the 19th intraday record in 2025. The rally comes ahead of President Donald Trump’s expected reciprocal tariff announcement on April 2, which has fueled safe-haven demand.
The precious metal has soared 19% year-to-date and over 40% in the past year, making it one of the top-performing assets amid global economic uncertainty and inflation pressures.
JPMorgan and Goldman Sachs See More Upside for Gold
JPMorgan analysts reaffirmed gold as the top hedge within the commodities complex, citing a bullish medium-term trend. They emphasized that long gold remains the most attractive play for investors seeking protection from market risks.
Goldman Sachs raised its year-end target for gold to $3,300, citing stronger-than-expected ETF inflows and continued demand from global central banks. According to Goldman strategist Lina Thomas, only major geopolitical shifts or equity sell-offs could temporarily derail the rally.
Momentum, Not Fundamentals, Driving the Rally
Societe Generale researchers noted that gold’s recent surge is momentum-driven, rather than fundamentally based. Their analysis shows gold jumped from $2,500 to $3,000 in just 210 days, significantly faster than previous $500 leaps, which historically took an average of 1,700 days.
Despite that, they expect the momentum to remain intact, projecting continued gains throughout 2025.
Tariff Announcement Could Trigger Short-Term Reversal
As markets brace for President Trump’s White House announcement on Wednesday, analysts say gold may face a brief correction if tariffs are delayed or softened.
“Tariff-related sentiment is already partly priced in,” said Linh Tran, a market analyst at XS.com. “Any unexpected delay in Trump’s implementation could prompt profit-taking after such a rapid climb.”
However, a hawkish trade move could reinforce the rally. The safe-haven appeal of gold strengthens in times of rising geopolitical tension, inflation, and slowing global growth.
Gold Eyes $3,300 Amid Global Uncertainty
With gold prices at historic highs and momentum building, analysts remain bullish heading into Q2 2025. Market participants are watching Trump’s next moves closely, but tariff tensions, inflation, and central bank demand all support further upside.
As Goldman Sachs and JPMorgan reaffirm their bullish stance, investors seeking shelter in volatile times may continue turning to gold as their asset of choice.