Gold prices surged to an all-time high this morning as fresh trade tensions emerged between the U.S. and Europe. President Trump’s latest threat to impose steeper tariffs on European goods sent shockwaves through financial markets, fueling demand for the precious metal.
Spot gold reached $2,974 in early trading, marking a significant milestone. The rally comes on the heels of mounting central bank purchases, which prompted Goldman Sachs to sharply revise its year-end 2025 forecast upward—from $2,890 to $3,100 per ounce. Analyst Lina Thomas and her team reaffirmed their bullish stance on gold, urging investors to maintain long positions.
Meanwhile, the physical gold market remains under pressure as demand soars. Imports of the metal have skyrocketed in recent months, while COMEX vaults continue to see a steady influx of deliveries. Over the past three months alone, the exchange has taken in a record-breaking 40.15 million ounces (approximately 1,250 metric tons).
Hedge funds and speculative traders, however, may have miscalculated. Many had trimmed their gold holdings just as prices took off, potentially leaving them on the wrong side of the trade.
Interestingly, gold’s latest surge has nearly erased Bitcoin’s post-election gains, reigniting the debate between traditional bullion and digital assets. Will physical gold maintain its dominance, or will cryptocurrencies prove to be the ultimate safe haven?
Looking ahead, Goldman Sachs anticipates further gains, projecting a potential 5% increase in gold prices by December 2025. If concerns over U.S. fiscal health continue to mount, the metal could climb to $3,250 per ounce. Inflation worries and fears over America’s debt burden may drive more speculative investment and ETF inflows, while central banks—particularly those with significant U.S. Treasury holdings—could increase their gold purchases as a hedge against economic uncertainty.
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