Gold surged to a fresh all-time high on Monday, driven by investor anxiety over rapidly shifting US trade policy, before paring back gains, before pulling back slightly.
Bullion briefly traded above $3,245 an ounce, surpassing Friday’s previous record. The rally extended a strong run for the precious metal, which rose more than 6% last week, buoyed by ongoing weakness in the dollar.
However, it has since retreated from those peaks and at the time of writing, gold futures were muted at $3,244.70 per ounce, while the spot price slipped 0.3% to $3,231.03 an ounce.
“Gold seems to be the clear beneficiary of the debates raging around the US dollar, and we’ve witnessed the gold price in absolute beast mode,” Chris Weston, head of research at Pepperstone Group, said.
Gold’s rally has been underpinned by renewed safe haven demand, as markets contend with a deteriorating outlook for global trade following Donald Trump’s intensification of tariffs on Chinese goods, despite selective exemptions for consumer electronics.
Goldman Sachs (GS) raised its 2025 gold price forecast to $3,700 per ounce on Sunday, up from $3,300 — the third upward revision by the Wall Street bank this year. The bank cited elevated geopolitical risks and increased demand for hedging against economic downturns. In a more extreme scenario, it said, gold could reach as high as $4,500 per ounce by the end of 2025.
The bank also highlighted bullion’s role as a buffer against rising recession risks in the US.
