Gold prices soared to USD 3,073.86 per ounce, gaining 0.79% on the day. Silver prices also rose, reaching USD 34.31 per ounce, marking the highest level since October 2024.
Gold Price Outlook [Goldprice.org]
Gold and Silver Extend Gains
Gold has gained 36.50% over the past year and 88.03% in five years. Silver prices surged 37.40% over the past year and 143.73% in five years.
The rise in precious metals comes as investors seek safety amid global economic uncertainty and rising inflation fears.
Trump’s Tariffs and Market Impact
President Donald Trump announced a 25% tariff on all imported cars and light trucks, effective April 2. He also imposed reciprocal tariffs on countries that tax US goods. These measures could trigger retaliation and increase pressure on the US economy.
Traders now expect the Federal Reserve to cut interest rates twice this year—once in June and again in September. The chances of a third cut in December are rising, adding to the bullish sentiment for gold and silver.
Goldman Sachs Raises Gold Forecast
Goldman Sachs has revised its end-2025 gold price forecast to USD 3,300 per ounce from USD 3,100. The investment bank cited strong ETF inflows and sustained central bank demand as key drivers. The new forecast range is USD 3,250 to USD 3,520 per ounce.
Gold vs. Silver: What’s the Better Investment?
Both gold and silver provide a hedge against market downturns and rising inflation. However, they have different characteristics:
- Silver is tied to the global economy: About half of all silver is used in industrial applications like electronics and solar panels. Its demand rises with economic growth.
- Silver is more volatile: Silver prices can be two to three times more volatile than gold, making it riskier.
- Gold is a better portfolio diversifier: Gold has low correlation with stocks and other asset classes, making it a strong hedge.
- Silver is cheaper than gold: Silver is more affordable for retail investors looking to own physical metal.
Ways to Invest in Gold and Silver
Investors can gain exposure to gold and silver in multiple ways:
- Physical Metals: Buying bars and coins allows direct ownership but comes with storage and insurance costs.
- Exchange-Traded Funds (ETFs): ETFs offer exposure without physical storage, though they don’t provide ownership of the actual metal.
- Mining Stocks and Funds: Investing in gold and silver mining companies can offer potential gains linked to rising metal prices.
Final Thoughts
Gold and silver remain strong assets for uncertain times. With trade tensions rising and interest rate cuts expected, investors are turning to precious metals for stability. The long-term outlook remains positive, with major banks predicting further price increases.
