World gold prices have increased about 12% since the beginning of the year.

World gold prices continue to set new records, approaching the 3,000 USD/ounce mark

World gold prices soared to a record high yesterday, as concerns about a global trade war sparked by US President Donald Trump's tariff threats boosted demand for gold as a safe-haven asset.

Spot gold rose 0.04% to $2,936.31 an ounce on the day. During the trading session, the price of gold hit $2,954.69 an ounce, marking its 10th record high this year. Meanwhile, the price of gold futures in the US also increased 0.7% to $2,956.10 an ounce. Since the beginning of the year, the price of gold has increased by about 12%.

Ongoing trade tensions continue to raise concerns about inflation and economic growth, boosting investment demand for gold as a safe haven, according to Peter Grant, vice president and senior metals strategist at Zaner Metals.

President Trump said he would announce new tariffs on lumber, autos, semiconductors and pharmaceuticals within the next month or so. Since taking office on January 20, Trump has imposed a 10% tariff on imports from China and a 25% tariff on steel and aluminum.

"We've continued to see central banks buying gold throughout the year, which has been one of the main factors supporting gold prices. In addition, ETF (gold exchange-traded fund) inflows have continued for three consecutive days," said Phillip Streible, chief market strategist at Blue Line Futures.

Trump also criticized Ukrainian President Volodymyr Zelenskiy as a dictator on Wednesday and told him to act quickly to ensure peace or risk losing his country. Peter Grant said a potential peace deal could temporarily ease geopolitical tensions and could see gold prices fall slightly in the short term. However, he said: 'The current record highs could last for a few weeks, but the uptrend in gold prices will continue as many fundamentals remain very supportive.'

Minutes of the Fed's most recent policy meeting showed Trump's initial policy proposals raised concerns about rising inflation, reinforcing the central bank's stance on pausing further rate cuts.

Gold exports from Switzerland rose in January from a year earlier, with supplies to the United States rising to their highest level in at least 13 years, according to Swiss customs data.

Besides gold, silver prices also increased by 0.6% to 32.92 USD/ounce. Platinum prices increased by 0.7% to 978.05 USD/ounce, while palladium prices increased by 1% to 978.02 USD/ounce.

Gold prices are forecast to continue to rise

Several major Wall Street financial firms have raised their gold price forecasts to $3,000 or higher. Goldman Sachs, for example, raised its gold price forecast to $3,100 by the end of 2025, up from $2,890 previously. The firm said that the increase in demand from central banks and investors seeking safe-haven assets.

Previously, analysts at ING also predicted that gold prices would surpass the $3,000 mark in the first quarter of this year.

Not all firms are as optimistic, however. Morgan Stanley, despite saying that gold’s recent rally appears unstoppable, forecasts prices will fall to $2,700 by the fourth quarter. The firm said a potential peace deal between Russia and Ukraine could reduce central bank demand for gold, which has helped push prices higher.

Moody's Analytics said in a recent report that its forecast for gold prices to reach $3,000 by the end of 2026 reflects expectations of slowing growth and the risk of things getting worse. Specifically, the firm highlighted the risk of recession in major markets.

"The risk of recession in Europe and China due to tit-for-tat tariffs could push gold prices even higher," Moody's said, noting that financial markets are currently underestimating the likelihood of this happening.

ING agrees, saying that trade and tariff uncertainty will continue to support gold prices. 'With Trump back in the White House, uncertainty and unpredictability are high,' ING analysts wrote, adding that 'gold will continue to benefit from this environment.'