Gold prices reached record highs on Monday, exceeding $2,870 per ounce. This surge was driven by safe-haven demand following US President Donald Trump’s announcement of new 25% tariffs on all steel and aluminum imports, escalating trade war fears. These new tariffs supplement existing metal duties as part of a broader trade policy overhaul. Concurrently, expectations of looser monetary policy from major central banks are rising. Investors anticipate two Fed rate cuts in 2024, aligning with FOMC projections, despite robust labor data. Last week, the Bank of England also reduced rates, adopting a more dovish stance than predicted. The RBI implemented its first rate cut in nearly five years, marking a departure from pandemic-related measures.
Central bank gold purchases provided further support for bullion, with the People’s Bank of China increasing its reserves for the third consecutive month in January, according to official data. This sustained demand for gold as a safe haven asset underscores its enduring value in times of economic uncertainty. The interplay between trade tensions and monetary policy decisions continues to exert significant influence on today’s gold price.
Gold has seen a significant increase of 258.74 USD/t oz., or 9.86%, since the start of 2025, based on contract for difference (CFD) trading that tracks the benchmark market. Historically, gold reached an all-time high of 2886.72 in February 2025. Trading Economics global macro models and analyst expectations predict that gold will trade at 2832.12 USD/t oz. by the end of this quarter and at 2939.54 in 12 months. These forecasts suggest a continued upward trajectory for gold prices in the coming year.
Gold is primarily traded over-the-counter (OTC) on the London market, the US futures market (COMEX), and the Shanghai Gold Exchange (SGE). The standard futures contract is for 100 troy ounces. Gold often serves as an attractive investment during periods of political and economic instability. Approximately half of global gold consumption is for jewelry, 40% for investments, and 10% for industrial applications. The leading gold producers are China, Australia, the United States, South Africa, Russia, Peru, and Indonesia.
The largest consumers of gold jewelry are India, China, the United States, Turkey, Saudi Arabia, Russia, and the UAE. Trading Economics provides gold prices based on OTC and CFD financial instruments, intended as a reference rather than a basis for trading decisions. This information is not verified by Trading Economics, and they disclaim any obligation to do so. The dynamic nature of the gold market necessitates careful consideration of various factors influencing today’s gold price.
Today’s gold price reflects a complex interplay of global economic forces, including trade disputes, monetary policies, and investor sentiment. The current trend suggests a bullish outlook for gold, driven by its enduring appeal as a safe-haven asset and the anticipation of further economic uncertainty.
