Gold prices soared past the critical $3,000 (Rs 2.6 lakh) mark on Tuesday, reaching an all-time high of $3,005.09 per ounce for the second time in a week.
The surge comes as investors seek refuge from escalating economic uncertainties driven by U.S. President Donald Trump’s tariff policies.
Historically regarded as a safe-haven asset during geopolitical instability, gold has already climbed 14% this year. Since Trump’s return to office in January, gold has set new record highs 14 times, reflecting heightened demand amid global trade tensions.
Financial analysts at UBS have noted that the rally may continue as long as economic policy risks and trade conflicts persist.
READ ALSO: U.S. Faces Retaliatory Tariffs as Global Trade Tensions Rise
“With gold reaching our long-held target of $3,000 per ounce, the key question now is whether the upward trend will sustain. Given the current economic climate, we believe it will,” UBS stated in a report. The firm has now revised its gold price target to $3,200 per ounce across all timeframes, up from the previous $3,000 estimate.
Trump’s administration has introduced a series of tariff measures, including a 25% levy on steel and aluminum that took effect in February. Additional sector-specific and reciprocal tariffs are expected to be implemented by April 2, further fueling market uncertainty.
As trade tensions intensify, gold continues to attract investors looking for stability. Whether the rally will persist remains to be seen, but for now, the precious metal is shining brighter than ever.
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