Gold prices soared to an all-time high on Monday, surpassing $3,100 per ounce for the first time, as investors sought refuge in the safe-haven asset amid growing economic uncertainty and geopolitical tensions.

Reuters reports that spot gold hit a record-breaking $3,106.50 per ounce, continuing its upward trajectory after breaching the psychological $3,000 mark earlier this month. The precious metal has gained over 18 per cent since the start of the year, solidifying its position as a hedge against economic instability and inflationary pressures.

Market analysts attribute the rally to a combination of factors, including concerns over U.S. President Donald Trump’s tariff policies and broader geopolitical risks. Since assuming office, Trump has proposed a series of tariffs aimed at protecting American industries, including a 25% tariff on imported vehicles and auto parts, along with an additional 10% levy on all Chinese imports. A fresh set of reciprocal tariffs is expected to be announced on 2nd April.

"Tariff issues will continue driving (gold) prices higher until there is some finality to the tit-for-tat campaign," noted Marex consultant Edward Meir.

The bullish outlook on gold has led major financial institutions to revise their price forecasts. Goldman Sachs now projects gold to hit $3,300 per ounce by year-end, up from its previous target of $3,100. Similarly, Bank of America has adjusted its forecast, expecting gold to trade at $3,063 per ounce in 2025 and $3,350 per ounce in 2026—significantly higher than earlier predictions of $2,750 and $2,625, respectively.

Analysts at OCBC remain optimistic about gold’s prospects, stating, "For now, gold's appeal as a safe haven and inflation hedge has further strengthened in light of these geopolitical concerns and tariff uncertainty. We remain constructive on the outlook of gold amid ongoing global trade friction and uncertainty."

Additionally, strong central bank demand and increased inflows into gold exchange-traded funds (ETFs) have provided further support for the metal’s remarkable rally. With global economic uncertainty persisting, many experts believe gold's momentum is far from over.