The Gold price is set to shine for the seventh week in a row, buoyed by investor fears over a global trade war.
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The spot gold price was just around $2,900 an ounce in mid-trading today. That’s down from the bullion record peak of $2,942.70 hit earlier this week, but it is still on course for that seventh straight rise. The main driver behind the hunt for gold is President Trump’s tariffs policy, which gained an extra push yesterday in the wake of his call for reciprocal tariffs on every country that imposes taxes such as VAT on U.S. imports. That is on top of his threat to impose 25% tariffs on steel and other metal imports in March, as well as those already imposed on top trading rival China.
Gold is the Safe Haven as it Nears $3,000
The chances of a global trade war and the potential economic damage that could do to countries around the world have seen investors flock to that traditional safe-haven in troubled times – gold. Other factors helping propel gold higher are the worries over inflation, a weaker U.S. Dollar, and continued geopolitical worries in Ukraine and the Middle East. Analysts believe it won’t be long until the spot gold price hits $3,000 an ounce for the first time ever. It could even happen as early as this quarter.
Golden Stocks and ETFs
The gold rush however is having a mixed impact on Gold ETFs and stocks. The SPDR Gold Shares ETF (GLD) is down 0.4% over the last five days, with the VanEck Gold Miners ETF (GDX) down 1%. Miner Barrick Gold (GOLD) is, however, up over 3% over that period, and Newmont Mining (NEM) is up 2.5%.
Is GOLD a Good Stock to Buy?
On TipRanks, GOLD has a Moderate Buy consensus based on 8 Buy and 4 Hold ratings. Its highest price target is $27. GOLD stock’s consensus price target is $22.04 implying an 21.57% upside.
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