This week, gold surged to a new all-time high, reaching $3,139.90 per ounce, following its landmark crossing of the $3,000 threshold in March. Although President Donald Trump’s recent tariff announcements negatively impacted prices on Thursday, investor sentiment towards the precious metal remains largely optimistic.
According to a research note by Francisco Blanch and Irina Shaorshadze, from Bank of America’s Global Commodity Research division, “Traditionally, inflation and real yields have significantly influenced gold prices; however, central bank purchases have recently become the dominant driver propelling current gold price increases.”
The analysts anticipate that gold could climb to $3,500, representing a potential gain of 13% from its current positioning.
George Milling-Stanley, chief gold strategist at State Street Global Advisors, agrees that central bank acquisitions will sustain gold’s upward momentum this year. He also identifies two additional factors that may contribute to this trend.
ELON MUSK’S IDEA FOR FORT KNOX GOLD
During a February interview with Finance Newso Business, Milling-Stanley observed a significant uptick in investment among emerging markets, particularly in China, as well as in countries like India. He noted a resurgence of gold investment in Western nations, attributing this trend largely to growing concerns about the economic outlook for the United States and European countries.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 37965.6 | -349.26 | -0.91% |
| SP500 | S&P 500 | 5062.25 | -11.83 | -0.23% |
| I:COMP | NASDAQ COMPOSITE INDEX | 15603.262067 | +15.48 | +0.10% |
The U.S. stock market experienced significant volatility on Thursday following Trump’s introduction of reciprocal tariffs, resulting in a steep decline across all three major indices. The Dow Jones Industrial Average plummeted by over 1,600 points, reflecting a drop of 4%, while the S&P 500 and Nasdaq Composite fell nearly 5% and about 6%, respectively.
WHEN WILL TARIFF PRICE INCREASES KICK IN?
Edward Yardeni, president of Yardeni Research, stated during an interview on Finance Newso Business’ “Making Money with Charles Payne” that gold has proven to be a reliable asset since the U.S. froze Russian assets following the invasion of Ukraine. “The more uncertainty and chaos we face, the better gold should perform,” he remarked.
This year, gold has gained $467.80, equating to a 17.79% rise, as reported by Dow Jones Market Data Group. In contrast, the S&P 500 index has suffered an 8% decline.
The SPDR Gold Trust ETF, the only exchange-traded fund being backed by physical gold, has risen 18% in value, contrasting sharply with the 8% loss seen in the S&P 500.
