Trump's tariff policies pushed gold above $3,100

Gold prices hit $3,100 per ounce for the first time ever on Monday, reaching an all−time high of $3,127.95 in early trading. The rally was fueled by growing investor concerns over US President Donald Trump's trade policies, potential economic fallout, and escalating geopolitical risks. These factors triggered a new wave of investment in the precious metal as a save-haven asset.

Since the beginning of the year, gold has surged over 18%, confirming its status as a hedge against economic and political instability.

The gold rally has prompted major banks to revise their price targets upward. Goldman Sachs expects the price to reach $3,300 per ounce by the end of the year, up from their prior $3,100 estimate. Bank of American predicts gold to reach $3,063 an ounce in 2025 and $3,350 in 2026, revising its earlier estimates of $2,750 and $2,625 respectively.

Meanwhile, debate continues in the US over new trade tariffs. Trump has already imposed 25% duties on imported automobiles and auto parts, as well as an additional 10% levy on imports from China. Investors expect him to announce new trade measures on April 2, according to Reuters.