Will gold touch $3,400? Price forecast hiked after it touches new high
Analysts had previously projected that the yellow metal would touch $3,200 in the short term after it hit $3,000 in the middle of March.
After it surpassed the $3,100 mark, many major investment banks raised their gold price forecasts for the end of 2025. Goldman Sachs currently targets gold at $3,300 per ounce, while Citi forecasts gold could reach $3,200/oz in the short term.
However, some analysts cautioned that a correction could be due as the market is overbought.
Alex Kuptsikevich, chief market analyst at the FxPro, said gold continues to extend gains into uncharted territories.
'The bulls are now targeting the level of $3,400 an ounce. This seems like the bulls' target for the coming months. However, we should not lose sight of the fact that the current rally in gold is accumulating extreme overbought conditions on both the daily and weekly timeframes,' said Alex Kuptsikevich, chief market analyst at the FxPro.
In Dubai, gold prices hit an all-time high on Tuesday as 22K surpassed Dh250 per gram for the first time. The Dubai Jewellery Group data showed 24K trading at Dh379 per gram, 22K at Dh350.75, 21K at Dh336.5 and 18K at Dh288.25. Gold has gained approximately Dh62 per gram in the first three months of 2025.
Globally, gold was trading at $3,145.51 per ounce, up 1.43 per cent on Tuesday morning as US tariff uncertainties propelled the yellow metal to a new all-time high.
As a defensive asset against risks, gold has risen nearly 20 per cent in Q1 2025, recording the largest quarterly increase in nearly 40 years.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said gold prices 'continue their journey to the north with little hesitation.'
Linh Tran, a market analyst at xs.com, said gold's upward trend is supported by an ideal environment, including concerns over US government tariff measures, global geopolitical instability, expectations of Federal Reserve interest rate cuts, and strong central bank demand.
'These are all factors driving capital flows into gold as a safe-haven asset, helping the precious metal maintain strong momentum throughout the first quarter. Financial market volatility, especially investors' risk aversion to uncertainties, has made gold the preferred choice,' she said.
Tran elaborated that geopolitical risks are also a key driver of gold's rally. 'Tensions in the Middle East, conflicts in Europe, and instability in certain other regions continue to increase demand for defensive assets. In this context, gold is not only a value-preserving tool but also an effective hedge against political and economic fluctuations.'
Another significant factor supporting gold prices is central bank purchases. Recent reports indicate that China, India, and several other countries are continuing to increase their gold reserves, contributing to a stable upward trend in prices.
Finally, there are the tariff measures that President Donald Trump's administration is expected to impose. These moves increase financial market uncertainty, prompting investors to seek safe-haven assets like gold. However, tariff-related information has already been partly reflected in gold prices over the past week. If President Trump delays the implementation of these policies, the market may witness a short-term correction in gold as investors take profits after a strong rally.
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