BENGALURU- Gold prices rose on Thursday as US auto tariffs ratcheted up global trade tensions ahead of an April 2 deadline for reciprocal tariffs from the world’s largest economy.
Spot gold rose 0.4 percent to $3,030.47 an ounce. US gold futures gained 0.5 percent to $3,036.00.
US President Donald Trump on Wednesday unveiled a 25 percent tariff on imported cars and light trucks starting next week, widening the global trade war.
Investors feared that Trump’s reciprocal tariffs, expected to take effect on April 2, might fuel inflation, slow economic growth and heighten trade tensions.
Concerns over Trump’s tariff policies catapulted gold to a record high of $3,057.21 on March 20.
Aakash Doshi, global head of gold at SPDR ETF Strategy, expects gold will breach $3,100 in the second quarter and “the market could potentially push another 8 percent-10 percent higher by end-2025 if the current macro and physical market tailwinds sustain for the yellow metal.”
Goldman Sachs on Wednesday raised its end-2025 gold price forecast to $3,300 per ounce from $3,100, citing stronger-than-expected ETF inflows and sustained central bank demand.
