Gold took on record prices on Friday. Frightened investors rushed to a safe shelter, fearing that President Trump's tariffs could reheat inflation and cause a slowdown in the economy.
The precious metals went above $3,000 per ounce for the first time before falling below that threshold in morning trading.
According to Macquarie strategists who raised gold price outlook, the draw as a safe shelter can be seen surge to a record high of $3,500 per ounce in the third quarter of this year.
RBC Capital Markets strategists increased their gold price forecast to $2,844 per ounce in 2025, up just 1% from previous forecasts, and $3,111 per ounce in 2026, an 8% increase from initial estimates.
And there is fear that tariffs could be imposed directly on gold imports, which means companies quickly stockpiling, leading to a massive flow of gold from overseas refineries to US warehouses.
Central banks around the world are also buying gold, according to Victoria Hasler, head of fund research at Hargreaves Lansdown.
“It's probably safe to assume that at least part of the reason is a desire to diversify reserves from the US dollar,” she said. Told to BBC News.
Meanwhile, the S&P 500 fell to the revision on Thursday – a fall of around 10% over the past month – uncertainty about Trump's trade policy before and after the sale has led to a massive sale.
The “Magnificent 7” companies, including tech stocks, particularly big names such as Apple and Tesla, have flown more than $1.5 trillion from their total valuation since their launch in 2025, after enjoying the big profits last year.
Trump's threatening tariffs in Canada and Mexico are currently suspended for 30 days. His large 20% collection in China. And his strict 25% tariff on the full aluminum and steel tariffs was quickly met with retaliation tax.
Most recently, the president threatened tariffs of up to 200% on European Union alcohol products on Thursday after the US proposed a 50% tax on US whiskey.
“While the general uncertainty and the worsening economic atmosphere have improved interest in gold, most of the gold price actions are related to uncertainty related to tariffs,” Helimacroft, head of the RBC Capital Market's Global Commodity Strategy, said in a research note.
