Gold prices have surged to a record high of $2,938 per troy ounce, driven by President Donald Trump’s 25% blanket tariffs on aluminum and imports, accelerating its long-term rally. Over the past year, gold has gained 44%, significantly outperforming other asset classes, including the S&P 500, and analysts from JPMorgan, Goldman Sachs, and Citigroup predict it could soon surpass $3,000. This surge is unusual during economic strength but is linked to trade policy uncertainty, inflation fears, and geopolitical tensions, alongside continued record-breaking gold purchases by central banks, particularly China’s. Central banks buy gold to hedge against inflation and currency instability, contributing to its sustained demand. Meanwhile, Bitcoin, often considered a digital alternative to gold, has fallen 6% since Trump’s tariff announcement, diverging from gold’s upward trajectory. Continue here.
