Gold prices broke through the $3,100 per ounce barrier for the first time, pushed by concerns regarding the tariffs imposed by President Donald Trump of the United States of America and the potential economic implications that could result from them.

A renewed flood of investments into this safe-haven asset has been encouraged as a result of this, in addition to the geopolitical uncertainties that have been occurring. The spot price of gold has achieved an all-time high of $3,106.50 per ounce, which is an unparalleled level. As a result of gold’s reputation as a hedge against economic and geopolitical upheaval, its price has risen to several record highs, with an increase of more than 18% so far this year.

In the beginning of this month, it successfully broke the psychological threshold of $3,000 per ounce for the very first time. This is a significant milestone that analysts believe signifies an increase in concerns surrounding economic instability, geopolitical tensions, and inflationary pressures. Because of the recent spike in bullion prices, a number of financial institutions have revised their estimates for the price of gold for the current year upward.

As a result of continuous geopolitical tensions and uncertainty surrounding tariffs, gold’s desirability as a secure asset and a hedge against inflation has been bolstered at the present time. The analysts at OCBC have an optimistic outlook for gold, and they cite ongoing tensions in global trade and uncertainty as important reasons that are shaping their perspective.

This month, Goldman Sachs, Bank of America, and UBS have all revised their price projections for gold. Goldman Sachs has projected that the price of gold would increase to $3,300 per ounce by the end of the year, which is an increase from the prior estimate of $3,100 per ounce. An upward revision from earlier estimates of $2,750 per ounce for 2025 and $2,625 per ounce for 2026, the Bank of America anticipates that gold prices will reach $3,063 per ounce in 2025 and $3,350 per ounce in 2026. This represents a significant increase from the previous projections.

Following his election to the presidency, President Trump has suggested a variety of new tariffs with the intention of protecting American industry and reducing trade deficits. An additional 10% duty will be applied to all imports from China, in addition to a 25% tax that will be applied to imported automobiles and related components. The second of April is the day that he intends to present a fresh set of reciprocal tariffs. It is expected that ongoing tariff issues will continue to exert upward pressure on gold prices until a resolution is reached in the reciprocal trade measures, as stated by Edward Meir, a consultant with Marex. Analysts and investment banks are of the opinion that additional factors, including as robust demand from central banks and inflows into exchange-traded funds, will continue to contribute to the amazing gain that gold has had this year.