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Gold prices reached a new record high, surpassing $4,800 per ounce on March 7, 2026, as investors sought refuge from escalating tariff threats from the United States government. This sharp increase comes amid growing fears of a global trade war, prompting many to reconsider their investment strategies in favor of gold, often viewed as a safe haven during economic uncertainty.
The rise in gold prices has intensified discussions among investors about the potential for further increases following a remarkable performance in 2025. Analysts suggest that factors such as geopolitical tensions, declining real interest rates, and a shift away from the US dollar are solidifying gold’s status as a primary store of value.
Analysts Predict Continued Growth
Forecasts for gold remain optimistic, with professionals surveyed by the London Bullion Market Association (LBMA) anticipating prices could exceed $5,000 this year. These projections are underpinned by expectations of lower real interest rates in the US and ongoing easing measures from the Federal Reserve. Notably, Julia Du, a senior commodities strategist at ICBC Standard Bank, predicts that gold could rise to as high as $7,150, highlighting the enduring appeal of this precious metal.
The LBMA emphasized that gold remains a central topic in the investment community following its record-breaking year. In alignment with this sentiment, Daan Struyven, co-head of global commodities research at Goldman Sachs, reiterated the firm’s bullish outlook, projecting a year-end price of $4,900. He noted that central bank purchases were a major driver of gold’s price increases in 2023 and 2024, with private sector demand accelerating the rally in 2025.
Struyven remarked on a significant trend where private investors are diversifying their portfolios to include gold, with exchange-traded fund (ETF) inflows serving as a visible indicator of this shift. According to Goldman Sachs, demand is predominantly driven by private wealth firms, asset managers, hedge funds, and pension investors.
Geopolitical Factors Fuel Demand
For many analysts, the geopolitical landscape is a critical element influencing gold’s market trajectory. Nicky Shiels, head of metals strategy at MKS PAMP, asserted that the current cycle does not reflect a speculative peak but rather a sustained demand for gold. She anticipates prices reaching $5,400 this year, indicating a solid year-on-year growth of approximately 30%.
Shiels noted that the previous year marked a historic shift in precious metals, with silver prices doubling and gold climbing by 60 percent. While she does not expect such dramatic gains to repeat, the ongoing demand for gold is indicative of a secular trend rather than a temporary spike.
Recent geopolitical tensions, including US involvement in Venezuela and efforts to assert control over Greenland, have further propelled investors toward gold. Shiels emphasized the increasing necessity to secure critical metals and commodities, asserting that these dynamics are shaping investment strategies for the coming decade.
As gold prices continue to soar, investors are likely to remain focused on global developments and monetary policies that could impact the metal’s value. With a combination of strong demand from both central banks and private investors, the outlook for gold appears robust as it navigates an increasingly complex financial landscape.
