Gold continued its rise in the past week, surpassing the price of $3,000 per ounce for the first time ever. The push is credited to investors opting for safe-haven assets amid the economic and geopolitical uncertainty.
Spot gold peaked at $3,022.00 early on Friday before settling at $3,002.50 per ounce by the end of the day after a profit-taking run. It is already 13.74% up in 2025, following the 24% jump in the last year. U.S. gold futures, on the other hand, have closed at $3,001.10.
Some experts believe that the surge in gold prices is a result of global central banks being more aggressive in building their reserves of the precious metal in recent years. Central banks turn to gold when they look to diversify their reserves or when they expect certain disruptions or sanctions, with the latter being common in emerging economies.
In a recent report, Goldman Sachs’ analyst Lina Thomas predicted that gold will reach $3,100 by the end of the year compared to previous forecast of $2,890 per ounce. Under the right circumstances, $3,300 per ounce would also be possible.
“We also see upside risk to our gold price forecast from stronger-than-expected central bank demand on higher US policy uncertainty,” Thomas added.