Gold hit an all-time intraday high of $3,148.88 on Tuesday, extending a record-setting rally as investors reacted to mounting global trade concerns.
The advance in prices intensified ahead of President Trump’s scheduled Wednesday announcement on reciprocal tariffs aimed at countries with trade imbalances, prompting markets to reassess risk and safe-haven demand.
Several factors have combined to sustain gold’s momentum. Goldman Sachs raised its probability of a U.S. recession from 20% to 35%, contributing to investor caution. Ongoing conflicts in Ukraine and the Middle East have increased geopolitical uncertainty, while market expectations for upcoming Federal Reserve interest-rate cuts have reduced the opportunity cost of holding non-yielding bullion.
Analysts point to both continued central bank buying since spring 2022 and renewed interest from Western investors seeking shelter from market volatility as drivers behind gold’s surge. The metal closed its strongest quarter since 1986, and many market participants are now eyeing a potential upside target near $3,300.
At the same time, some strategists warn the market is in overbought territory and could face a correction if key support levels give way. A drop below $2,955 is cited by some as a critical threshold that might signal a pullback.
In summary, gold’s recent gains reflect a mix of macroeconomic risk, geopolitical stress, central bank activity, and shifting investor sentiment. While upside toward $3,300 remains plausible, traders and investors are monitoring technical support levels and broader economic signals for signs of a reversal.