Gold prices soared to a historic peak on Thursday as market participants intensified safe-haven positioning amid heightened trade tensions and a broad-based selloff in equity markets. The bullion rally follows U.S. President Donald Trump’s announcement of a 25% tariff on imported vehicles, which has prompted retaliatory threats from major economies, including Canada and the European Union.
Spot gold gained 1% to $3,050.32 per ounce (1740 GMT), after touching an all-time high of $3,059.30. Meanwhile, U.S. gold futures advanced 1.3% to settle at $3,061, briefly reaching an intraday record of $3,071.30. With 17 record-breaking sessions this year, analysts anticipate that the next psychological threshold of $3,100 per ounce could materialize imminently.
Bob Haberkorn, senior market strategist at RJO Futures, attributes the latest surge to escalating uncertainty surrounding U.S. trade policy, reinforcing gold’s role as a liquidity refuge amid geopolitical and economic turmoil. Beyond tariff-induced volatility, gold’s momentum is bolstered by sustained central bank inflows and strong ETF demand, noted Phillip Streible, chief market strategist at Blue Line Futures. Institutional investors continue to favor gold as a strategic hedge against inflation and currency fluctuations, particularly as monetary policy decisions remain fluid.
Goldman Sachs raised its end-2025 gold price forecast to $3,300 per ounce—up from $3,100—citing resilient ETF demand and persistent central bank accumulation. Market participants are closely monitoring U.S. Personal Consumption Expenditures (PCE) data, due Friday, to assess potential shifts in the Federal Reserve’s rate trajectory. Although the Fed opted to hold rates steady last week, a dovish tilt in future guidance could further entrench gold’s bullish trajectory in a prolonged low-interest-rate environment.
Spot silver climbed 1.7% to $34.27 per ounce, marking its highest level since October 2024. Platinum edged up 0.7% to $981 per ounce, while palladium gained 0.3% to $971.25 per ounce.
For the Southern African region, a continued uptrend in gold prices bodes well for gold-producing economies like South Africa, reinforcing revenue streams for miners and stimulating investment inflows into the extractive sector. However, broader commodity market volatility—exacerbated by trade friction—may pose macroeconomic risks for resource-dependent economies, particularly those reliant on industrial metals. As geopolitical headwinds persist, gold remains a cornerstone asset for capital preservation, reinforcing its strategic role in diversified portfolios.
