KATHMANDU, April 17: Gold soared to a new all-time high in the international market, fueled by fresh concerns over the economic fallout from new tariffs imposed by US President Donald J. Trump.
Spot prices in the US on Wednesday surged to $3,357.40 per troy ounce before easing back in the US market, following US Federal Reserve Chair Jerome Powell's stark warning that President Trump's tariff policies were "significantly larger" than expected.
Powell cautioned that the escalating trade measures could slow economic growth and push inflation higher — a combination that has investors flocking to gold as a safe haven. Analysts at Deutsche Bank described Wednesday’s price movement as the "biggest daily jump in two years."
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The rally builds on what has already been a banner year for gold. Prices have climbed sharply amid rising fears of a US recession, geopolitical tensions and heightened market volatility. Last week, Goldman Sachs raised its 2025 gold price forecast by $400, now expecting gold to hit $3,700 an ounce by year-end.
Goldman analysts predicted gold would trade between $3,650 and $3,950, citing strong central bank demand and growing recession risks. "If recession materializes, we see gold reaching $3,880, or even $4,500 under certain scenarios," they said in a note.
The recent surge comes after gold briefly dipped earlier this month, when investors sold off assets to meet margin calls during a stock market selloff triggered by the April 2 tariff announcement. However, gold has quickly regained momentum as fears about economic instability mount.
Other major banks have also raised their outlooks. UBS boosted its 2025 gold price target to $3,500 last week, pointing to "escalating tariff uncertainty, weaker growth, higher inflation, and lingering geopolitical risks." Bank of America maintains a similar forecast, also expecting prices to reach $3,500.
Gold had already made history in March by crossing the $3,000 mark for the first time — a milestone that now seems like a distant memory as new highs continue to be set.
