Gold remains at record highs in early 2025 amid increased demand from investors seeking protection amid political instability, writes Business Insider.
While its rise was expected to continue, recent decisions by the Trump administration have accelerated the process, ING noted. The cost of April futures on the Comex exchange exceeded $2900 per troy ounce on Saturday, setting a new all-time record. Since the beginning of the year, the yellow metal has risen in price by 10%.
ING now predicts gold will hit $3,000 an ounce as early as this quarter – supported by trade uncertainty and tariff disputes.
“If tensions escalate, demand for gold as a safe-haven asset will remain strong,” the analysts wrote. They also noted that tariffs have raised concerns about the rising cost of physical gold.
The bank also pointed out that recent presidential statements about the Gaza Strip have added to uncertainty.
The outlook for gold was also raised at UBS, with the 12-month average raised from $2850 to $3000.
