Left Hand in Safe-Haven, Right Hand Against Inflation: International Gold Prices Hit New Highs with Seemingly No Resistance

TradingKey – This year, record-breaking gold prices have frequently made headlines across major media outlets. Geopolitical tensions, inflation trends, and U.S. tariffs have emerged as key drivers behind the surge in international gold prices, prompting both governments and individual investors to enthusiastically join the gold rush.

After breaking its all-time high on March 27, international gold prices continued their upward momentum on the 28th, currently trading at $3,084 per ounce, nearly the intraday peak.

[Gold Price Trend in 2025, Source: Investing.com]

Gold is traditionally regarded as the most favored safe-haven asset, offering natural advantages in hedging against inflation and economic risks.

Currently, U.S. President Donald Trump’s aggressive imposition of global tariffs has introduced uncertainties into global economic growth, while also raising inflation expectations in the United States.

Central banks, particularly those in emerging markets, are considered the primary buyers fueling the current wave of rising gold prices. Notably, the U.S. has also been actively increasing its gold reserves.

Following a staggering 43% surge in January, gold inventories at the New York Mercantile Exchange (NYMEX) soared another 25% in February. As of Tuesday (March 25), NYMEX gold inventories reached a record 42.6 million ounces—nearly double the level at the end of 2024.

In past years, during periods of high interest rates, gold ETFs saw persistent outflows. However, this trend has reversed in 2025. The surging demand for gold ETFs is now providing strong support for rising prices.

The bullish sentiment on Wall Street for gold continues to grow louder. UBS has raised its target for international gold prices to $3,200 per ounce, Goldman Sachs projects a rise to $3,300, Macquarie forecasts  $3,500, and Bank of America has increased its 18−month price target from $3,000 to $3,500.

At the current trajectory, international gold prices appeared poised to breach $3,100 per ounce imminently. However, it is worth noting that any signs of easing uncertainty surrounding Trump’s tariff policies could potentially cool off the overheated gold market.