Gold Reaches New All-Time High
Gold prices have surged to unprecedented levels in 2025, with spot gold crossing the $3,100 mark for the first time. On March 31, gold reached an intraday high of $3,111 per ounce before settling at $3,109. This rally has been fueled by escalating geopolitical tensions and economic uncertainty stemming from U.S. President Donald Trump's trade policies.
Trump's announcement of new reciprocal tariffs on April 2 has heightened global trade tensions, pushing investors toward gold as a safe-haven asset. Additionally, central banks and institutional investors have increased their allocations to gold amidst fears of inflation and market instability.
Bank of America Raises Gold Price Forecast
Bank of America (BofA) recently revised its gold price forecast for 2025 and 2026. The bank now expects gold to average $3,063 per ounce in 2025 and rise to $3,350 per ounce in 2026. This upward revision reflects stronger-than-expected demand from exchange-traded funds (ETFs) and sustained purchases by central banks.
BofA analysts noted that geopolitical risks and uncertainty surrounding U.S. fiscal policies will continue to support gold prices in the near term. However, they cautioned that reduced geopolitical tensions or fiscal consolidation could pose risks to the ongoing rally.
Factors Driving Gold’s Rally
The current surge in gold prices is attributed to several key factors:
- Geopolitical Tensions: Conflicts between Russia-Ukraine and Israel-Gaza have intensified safe-haven demand for gold.
- Trump’s Trade Policies: New tariffs on auto imports and reciprocal trade measures have added uncertainty to global markets.
- Central Bank Demand: Central banks are increasing their gold reserves as a hedge against currency volatility.
- ETF Inflows: Strong inflows into gold ETFs have bolstered prices further.
- Inflation Concerns: Rising inflation expectations are driving investors toward precious metals as a store of value.
Market Outlook for April 2025
Analysts predict that gold prices could spike above $3,200 before peaking later this month. The World Gold Council (WGC) has identified key resistance levels at $3,082 and $3,107, with a longer-term bullish trend potentially pushing prices toward $3,350 later this year.
While some experts anticipate a consolidation phase after the recent rally, others believe that geopolitical risks and trade tensions will sustain upward momentum for gold throughout April.
Silver and Other Precious Metals
The rally in precious metals is not limited to gold. Silver has also reached its highest level since October, trading at $34.10 per ounce as of March 31. Platinum and palladium have seen modest gains as well, reflecting broader strength in the commodities market.