Gold, after recovering from early losses, was trading near $2,800 per ounce as demand for safe-haven assets rose in response to newly announced tariffs by the U.S. administration. This uptick in safe-haven buying helped offset pressure from a firmer dollar.
Although prices initially fell more than 1%, they remained close to Friday’s record high of $2,817.23 as investors sought protection against the economic fallout of escalating trade tensions. Market participants and analysts expect gold to reach around $2,850 per ounce in the coming months as uncertainty in the global economy grows.
Concerns about retaliatory measures from affected trading partners have supported bullion’s appeal. Canada has announced counter-tariffs covering some $107 billion in U.S. goods, and China has indicated it will pursue a challenge through the World Trade Organization. Those developments, combined with broader worries about trade spillovers to growth and earnings, have encouraged investors to allocate to gold despite the dollar strengthening to three-week highs.
Financial institutions are offering mixed near-term views: some warn that equity market contagion could put short-term pressure on gold, while others remain constructive on medium-term prospects. For example, UBS has projected gold could rise to about $2,850 per ounce as uncertainty persists and demand for portfolio protection remains elevated.
Overall, the metal’s resilience in the face of a stronger dollar and rising geopolitical risk highlights its role as a hedge against trade-related volatility and potential economic slowdown. Investors will be watching further policy moves and any escalation in retaliatory measures closely, as these factors are likely to influence gold’s trajectory in the weeks and months ahead.