Gold prices are set to keep surging higher towards a record $3,000 as concerns over a global trade war continue helping Gold ETFs and stocks.
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Analysts at Citi Research have upgraded their three-month price target for the gold price to what would be a best-ever $3,000 per ounce from $2,800 and hiked their 2025 average forecasts to $2,900 per ounce from $2,800. The gold price is currently around the $2,866 mark, having climbed 8.23% over the last month.
Trade Wars Making Gold Shine
Citi said the main drivers behind its upgrade were the trade wars and geopolitical risks under President Trump as well as “robust central bank purchases.”
“The gold bull market looks set to continue under Trump 2.0 with trade wars and geopolitical tensions reinforcing the reserve diversification or de-dollarization trend and supporting emerging markets official sector gold demand,” Citi said.
Trump has delayed his threat of imposing 25% tariffs on Mexican and Canadian imports but has slapped a 10% tariff on China, which in turn has responded in kind with its own charges. Citi added that the chances of gold itself being put on a tariff list are far less likely than copper, silver, or platinum.
Investors Flock to ETFs and Stocks
Gold is therefore continuing to act as a safe haven for investors in times of heightened risks. There is not only a possible global trade war to worry about but also geopolitical risks in Ukraine and the Middle East.
It is also starting to boost Gold ETFs and stocks. The SPDR Gold Shares ETF (GLD) is up by 1.5% over the last five days since the Trump Tariffs tirade began, with the VanEck Gold Miners ETF (GDX) up 4%. Miner Barrick Gold (GOLD) is also up around 4% over that period, and Newmont Mining $NEM) up nearly 5%.
Is GOLD a Good Stock to Buy?
On TipRanks, GOLD has a Moderate Buy consensus based on 7 Buy and 4 Hold ratings. Its highest target price is $27. GOLD stock’s consensus price target is $21.79 implying an 27.06% upside.
