Gold prices soared to a historic peak on Friday on the back of new tariff proposals such as the 25% on car imports into America by President Donald Trump, creating concerns that the global trade war could escalate and driving investors to park towards the safe-haven asset.
Spot gold rose by 0.6% to US$3,074.31 per ounce (oz) at 0400 GMT, after reaching a record high of $3,077.44/oz earlier in the session.
The precious metal gained 1.7% over the week, positioning it for a fourth consecutive weekly increase.
Bullion is rocketing to new all-time highs surpassing US$3,100 for futures and Investment Banks are starting to re-evaluate their price predictions.
Goldman Sach's this week has significantly raised its gold price forecast to $3,300 by the end of 2025. The investment bank's says the price reflects a view that inflationary pressures, central bank policies and Trump's tariff volatility will keep gold prices elevated in the mid-term.
Citi agrees, albeit with a more dynamic approach, pricing gold at $3,200 over the next three months before gradually settling around $3,000 within the next 6-12 months.
Yet to update so far, HSBC has maintained a conservative stance on gold for the coming years, predicting that prices will hover around $2,620 by the end of 2025.
Deutsche Bank’s outlook is moderate, too predicting it drop to around $2,725 EOY with a gradual rise to $2,900 by the end of 2026.
