Gold Price Climbs as Tariff Uncertainty Looms
Gold surged on Wednesday as investors reacted to new US tariffs and escalating geopolitical tensions. Spot gold reached $5,200 per ounce before settling near $5,180. Meanwhile, silver rose 3%, hitting $90 per ounce. The market remains highly sensitive to policy shifts, with investors seeking safe-haven assets amid uncertainty.
President Donald Trump’s broad 10% import levy took effect this week, but markets fear it could rise to 15%. This uncertainty fuels demand for precious metals as investors hedge against inflation and trade volatility. Analysts note that gold’s recent recovery above $5,000 per ounce indicates stronger market support after the January rout.
Potential Gold Price Breakout Driven by Tariffs and Middle East Risks
Several analysts predict that gold may be on the verge of a significant breakout. TD Securities’ Bart Melek highlighted inflationary pressures from tariffs and rising oil prices, noting that geopolitical risks encourage hedging in gold. JP Morgan’s Yuxuan Tang emphasized that both tariff uncertainty and Iran tensions could catalyze a sustained upward trend.
Bank of America projects gold prices may reach $6,000 per ounce over the next year, reflecting investor appetite for stability amid risk. So far, gold has climbed more than 18% this year, marking its strongest performance since 1979. Analysts at JPMorgan also revised their long-term gold forecast to $4,500, maintaining a year-end target of $6,300 per ounce.
SuperMetalPrice Commentary:
Gold’s momentum reflects a classic flight-to-safety scenario, where tariffs and Middle East tensions drive investor demand. Traders should watch US trade policy announcements closely, as any escalation could accelerate gold and silver price growth. Meanwhile, institutional forecasts suggest strong upside potential, making precious metals a key strategic hedge for the remainder of the year.
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