Gold has gained 8.21% over one month, currently sitting at $2956.80 per ounce. Last month the price was $2759.20. The upward trend is due to the demand from central banks around the world. There are several reasons central banks, especially the emerging economies, are stocking up on the precious metal.
One of the key factors driving the price up is the impending tariffs from the Trump administration. He even insists on imposing a 25% tariff on his European trading partners and allies. This has a far reaching effect on the global economy as countries can strike back with retaliatory measures. Trump has imposed 25% tariffs on metals such as steel and aluminum. Now the EU is thinking of controlling certain imports from the US.
Even though the tariffs won’t come into effect until later in April, countries are already ramping up their efforts to shield their currency by buying up gold. Interest rate in the US has remained high for longer than expected. The FED governor doesn’t see any inflation due to the tariffs. But it would be good to keep the rate at a steady level for the time being. The dollar rebound has put more pressure on the metal market.
Goldman Sachs has improved the forecast on the gold price setting at $3,100 per ounce. Which is a decent increase in a year from $2,890 per ounce. The rise in demand by central banks will expedite the process and will nearly 10% increase the price. Even though most can’t predict how the tariff will play out in the long and short term. If the fear of a trade war persists longer the gold price might shoot up to $3,300 by the end of 2025.
Keeping up with the gold, silver contract is also on the rise and has gained 3.26% over the last five days. It’s now currently trading at $33.56 per ounce. Even though the copper shrank during the last five day trading, it is slowly recovering and currently trading at $4.601.