Investors are nervous because of U.S. President Trump's uncertain tariff plan, while the overall weakening of the dollar also provides support. Wednesday,Spot goldPrices have successively broken through the five major marks of 3260, 3270, 3280, 3290 and 3300, setting a new historical high.

As a safe-haven asset in a time of political and financial uncertainty, gold prices have risen so far in 2025.More than 25%, and set record highs many times.

Federal Register documents released on Monday show that the U.S. government is advancing an investigation into drug and semiconductor imports with an intention to impose tariffs. Trump said last SundayHe will announce tariff rates on imported semiconductors in the next week。

The dollar approaches three-year low against a basket of currencies, making gold more attractive to investors holding other currencies. "The rise in gold prices is also partly consistent with the continued weakness of the dollar, which shows that the dollar's position as a safe asset is gradually eroding - for many dollar investors, gold is likely to be an alternative. The short-term monetary policy outlook is providing further support for gold."

Financial markets expect the Federal Reserve to continue to cut interest rates in June after it remained stable in January and lower its policy interest rate by 100 basis points this year.Investors are now waiting for a speech scheduled for Fed Chairman Powell on Thursday Beijing time, to find more clues about interest rate paths.

On Wall Street,Goldman Sachs and UBS have once again released bullish gold reports, citing stronger-than-expected central bank demand and the role of gold as a hedge against recession and geopolitical risks, which support expectations that gold prices will rise further in 2025.

Goldman Sachs analysts, including Lina Thomas, now expect gold prices to be atRebound to $3,700 per ounce by the end of this yearand will be inTo reach $4,000 per ounce in mid-2026. UBS strategist Joni Teves pointed outGold prices will reach $3,500 per ounce in December 2025。Bank of America's gold target price is also $3,500。

The new targets, proposed after gold prices soared 6.6% last week and hit a new high of more than $3,245 per ounce on Monday, suggest amid uncertainty surrounding Trump’s trade policy ripped up global markets.The market has formed a strong bullish consensus on gold.

Goldman Sachs analysts said central banks could average around 80 tons per month this year, up from their previous estimate of 70 tons, and reiterated their long-term trading recommendations for bullish gold. They added that rising recession risks could also stimulate capital flows into gold ETFs.

"Recent capital flows have been surprisingly positive, possibly reflecting the rekindling demand from investors in hedging the risk of recession and the decline in risk asset prices," they said, adding,The bank's economists now believe that the probability of a recession is 45%。If this happens, “the inflows of funds from ETFs could accelerate further and push gold to $3,880 an ounce by the end of the year.”

Meanwhile, UBS expects strong demand from various market sectors—including central banks, long-term asset management companies, macro funds, private wealth and retail investors—as changes in the global trade and geopolitical landscape strengthen the need to allocate safe-haven assets. Teves said that, despite this,There is still room for further increase in gold's exposure, and market positions have not been overcrowded.

"The proportion of gold positions in the fund's total assets has the potential to exceed the level reached in 2020, although it will not necessarily reach its peak in 2012-13," she wrote, adding that the size of gold's investor size has expanded since the 2008 financial shock. “The ongoing uncertainty increases the demand for portfolio diversification and benefits gold.”

Meanwhile, Teves saidTightening liquidity conditions may help amplify price volatility, partly due to limited mine supply growth and a large amount of gold locked in central bank reserves and ETFs。