Gold prices rose in Asian trading on Thursday, supported by increased safe-haven demand after U.S. President Donald Trump imposed a 25% trade tariff on all car imports, marking an escalation in his tariff agenda.
Goldman Sachs also raised its 2025 gold price target, citing strong central bank demand and robust inflows from exchange-traded funds (ETFs).
Trump’s tariffs—set to take effect on April 2 along with several other duties—triggered a risk-off movement across global markets, with Wall Street and Asian stocks posting significant losses.
This boosted safe-haven demand for gold amid growing concerns that Trump would follow through on his other tariff threats.
Gold Holds Near Record Highs
Spot gold rose 0.4% to $3,032.21 per ounce, staying near its recent record highs. Gold futures for May delivery climbed 0.5% to $3,067.42/oz as of 01:10 ET (05:10 GMT).
Gold Supported by Safe-Haven Demand Amid Tariff Fears
Although gold saw some profit-taking earlier this week, its price remains near all-time highs as uncertainty over U.S. trade and economic policies continues to drive safe-haven demand.
Trump’s latest auto tariffs are expected to impact major economies, including Japan, Europe, and South Korea. The tariffs could also lead to higher U.S. car prices, potentially fueling inflation.
Trump is set to announce a series of retaliatory tariffs on April 2 against at least 15 major U.S. trading partners. The president has also threatened tariffs on key commodity imports and other sectors such as semiconductors and pharmaceuticals.
Europe, Canada, China, and Mexico have condemned the tariffs and threatened countermeasures, raising fears of a global trade war that could slow economic growth. This has kept traders leaning toward gold as a safe-haven asset.
Other Precious Metals and Copper Prices
Other precious metals showed mixed movements on Thursday. Platinum futures fell 0.1% to $968.20/oz, while silver futures rose 0.4% to $34.345/oz.
Among industrial metals, copper prices remained supported by expectations of tighter supply, especially if Trump imposes tariffs on copper imports. Benchmark copper futures on the London Metal Exchange rose 0.4% to $9,969.20 per ton, while U.S. copper futures inched up 0.1% to $5.2485 per pound.
U.S. copper futures hit a record high this week amid bets that Trump's tariffs would severely limit the country’s physical copper supply.
Goldman Sachs Raises 2025 Gold Price Forecast to $3,300/oz
Goldman Sachs raised its year-end 2025 gold price forecast to $3,300/oz from $3,100/oz, citing stronger-than-expected ETF inflows and sustained central bank demand, particularly in Asia and emerging markets.
The bank expects major Asian central banks to continue aggressively purchasing gold over the next three to six years to meet higher gold reserve targets.
On the ETF side, Goldman Sachs predicts more inflows from traders seeking a safe haven, especially if a U.S. recession occurs. This, along with rising demand for gold as a hedge, could push prices as high as $3,680/oz by the end of 2025.
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