Gold prices continue to rise amid economic uncertainties.
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Gold hit a new all-time high on Tuesday amid the uncertainty surrounding Donald Trump's planned tariff announcements and other economic factors.
Spot gold rose by 0.3% to US $3,148 per ounce on Tuesday morning, Reuters reported.
Gold rose by almost 20% in the first quarter of 2025, marking the largest quarterly increase in almost 40 years.
Lihn Tran, Market Analyst at XS.com, said geopolitical risks were a key driver of gold's rally as investors seek risk averse investments amid the current uncertainties.
"Tensions in the Middle East, conflicts in Europe, and instability in certain other regions continue to increase demand for defensive assets," Tran said.
"Another significant factor supporting gold prices is central bank purchases. Recent reports indicate that China, India, and several other countries are continuing to increase their gold reserves, contributing to a stable upward trend in prices."
US President Donald Trump's proposed tariff measures are also driving prices up, as these moves increase financial market uncertainty.
These anticipated tariff moves have already been priced into the gold market, Tran warned, meaning the market could see a downward correction if some of these tariff measures are delayed.
Major investment banks have already increased their gold price forecasts for the end of 2025, with Citi forecasting $3,200 and Goldman Sachs predicting the commodity could reach $3,300. Morgan Stanley foresees a 2025 average of around $2,360.
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