Gold prices set new records on rising demand for safe haven assets

Gold prices have reached a new high as demand for safe haven assets is increasing ahead of US President Donald Trump's imposition of new import tariffs, Bloomberg reports.

The precious metal has risen above $3,140 per ounce for the first time, the news agency says. According to researchers from Pepperstone, the main driver of this rally is growing fears of escalating trade and geopolitical tensions. 

Central banks' demand for gold also fuels its rise. The yellow metal is getting more expensive even as traders have cut bets on the US Federal Reserve’s (Fed) monetary easing this year. Lower rates tend to favorably affect the cost of bullion, Bloomberg notes.

Amy Gower, a strategist at Morgan Stanley, expects the asset to reach the range of $3,300–$3,400 in 2025. Goldman Sachs has also raised its year-end price forecast for gold to $3,300 per ounce. 

Meanwhile, data compiled by Bloomberg shows that holdings of gold ETFs are up 6% in 2025 after four years of net outflows.