Gold touches new file as newest Wall Avenue prediction sees costs reaching $3,500

As gold races to new information, Wall Avenue analysts have rushed to lift their value targets, with the newest name from Macquarie Group predicting the dear metallic will contact $3,500 within the third quarter.

On Thursday, gold futures (GC=F) climbed above $2,990 per ounce as a commerce battle intensified and the discharge of modest inflation information raised questions on whether or not the Federal Reserve could also be extra inclined to chop charges this 12 months.

“Yr-to-date, gold has been working forward of our expectations,” Marcus Garvey, head of commodities technique at Macquarie, wrote on Thursday.

“We’re elevating our gold value forecast to a 3Q25 quarter common peak of $3,150 per ounce and our single level value excessive to $3,500 per ounce,” Garvey wrote.

“President Trump’s speedy transfer to announce, if not all the time to enact, import tariffs has contributed to geopolitical uncertainty and boosted inflation expectations, serving to push down front-end actual charges and supporting gold within the face of periodic USD power and initially lowered expectations for Fed fee cuts,” the strategist wrote.

Learn extra: What Trump’s tariffs imply for the financial system and your pockets

The goal elevate comes after strategists at BNP Paribas known as for costs to push above $3,100 per ounce within the second quarter.

“The Trump administration issuing a slew of tariff threats and the realigning of worldwide relationships have added a brand new layer of macroeconomic and geopolitical uncertainty, offering a big enhance to gold,” BNP’s David Wilson wrote in a notice on Wednesday.

Gold futures have rallied greater than 11% 12 months so far, hitting a number of file highs since January.

Wall Avenue has attributed a lot of those beneficial properties to continued central financial institution shopping for and tariff uncertainty, together with the chance that even imports of the dear metallic into the US will not be spared.

Institutional buyers have shipped elevated quantities of bodily gold bars to vaults in New York in a transfer to front-run tariffs and benefit from a value disparity between London and New York.

Final month, Goldman Sachs analysts raised their year-end gold value forecast to $3,100 per ounce, up from their prior projection of $2,890.

Ines Ferre is a senior enterprise reporter for Yahoo Finance. Observe her on X at @ines_ferre.

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