Gold prices are surging in the global market, crossing $3,100 per ounce for the first time in history. This sharp rise may also impact local market prices.

According to Reuters, the spot price of gold hit a record $3,106.50 per ounce on Monday (March 31). So far this year, gold prices have increased by over 18%, with the price first surpassing $3,000 earlier this month. Experts attribute this surge to economic uncertainty, geopolitical tensions, and rising inflation concerns.

Why Are Gold Prices Rising?
Analysts at OCBC Bank believe gold’s status as a safe-haven asset and inflation hedge has strengthened due to increasing geopolitical risks and trade uncertainties. Given the ongoing global trade conflicts and economic instability, they maintain a positive outlook for gold.

Several major financial institutions, including Goldman Sachs, Bank of America, and UBS, have revised their gold price forecasts:

Goldman Sachs now projects gold prices to reach $3,300 per ounce by the end of the year, up from its previous forecast of $3,100.

Bank of America anticipates gold reaching $3,063 per ounce in 2025 and $3,350 per ounce in 2026, an increase from its earlier projections of $2,750 and $2,625, respectively.

To protect US industries and reduce trade deficits, President Donald Trump has introduced a new tariff plan, which includes:

Trump has also announced plans to introduce new reciprocal tariffs on April 2.

According to Marex consultant Edward Meir, these tariffs will continue to push gold prices higher unless there is a resolution to the ongoing trade disputes.