Gold Price Breaks $3100, Setting a New Record High – Will It Reach $4000 by the End of the Year?

On the eve of President Trump’s announcement of global tariffs, the price of gold soared to over $3,100 per ounce on Monday, March 31, setting a new historical high. This first quarter of the year has been the strongest quarter for gold prices since 1986. Goldman Sachs has stated that under extreme circumstances, the price of gold by the end of this year could break through $4,200.

According to Reuters, as of 13:07 Greenwich Mean Time, spot gold rose by 1.1% to $3,117.29 per ounce. U.S. gold futures rose by 1.2% to $3,151.10.

So far this year, gold prices have risen by approximately 18%, following a more than 27% increase in 2024. The primary driving factors include a favorable monetary policy background, strong central bank purchases, and demand for exchange-traded funds.

The relative strength index for gold is above 77, indicating an overbought market. However, analysts have pointed out that this momentum has already deviated from any standard price positioning logic.

Nitesh Shah, a commodity strategist at WisdomTree, stated, “The bull market for gold reflects concerns about tariffs. People are worried that these tariffs will stifle growth, potentially leading to economic downturns,” providing support for gold.

President Trump is expected to announce global tariffs on April 2, targeting all countries, while auto tariffs will take effect on April 3.

Goldman Sachs raised its year-end 2025 gold price forecast from $3,100 per ounce to $3,300 last week. They also mentioned that under extreme market conditions, the price of gold could climb to over $4,200 per ounce by the end of 2025, possibly exceeding $4,500 within the next 12 months.

Last week, Bank of America also revised its forecasts for gold, predicting an average price of $3,063 per ounce in 2025 and $3,350 per ounce in 2026.

“By this time next year, gold prices could be trading around $3,500, reflecting continued strong sentiment towards gold mainly due to ongoing geopolitical risks,” Shah stated.

Spot silver fell by 0.4% to $33.96 per ounce, platinum rose by 0.8% to $991.55 per ounce, and palladium increased by 0.8% to $979 per ounce. All three metals recorded monthly gains.