Gold Prices Break Ceiling Again… Stirred by 'Trade War and Inflation Concerns'

Gold Prices Rise Amid Stagflation Fears

Goldman Forecasts $3,300 per Ounce

International gold prices have hit a record high.

According to Reuters on the 28th (local time), at 3:10 PM Eastern Time, the spot gold price was trading at $3,074.35 per ounce, up 0.6% compared to the previous session. During the day, it rose to as high as $3,8670 per ounce, breaking the previous record high.

Gold futures also hit a record high on this day. On the New York Mercantile Exchange, June delivery gold futures closed at $3,114.30 per ounce, up 0.8% from the previous session, surpassing the previous record high on a closing basis.

The uncertainty in U.S. tariff policy, which has increased concerns about stagflation (a slowdown in the economy amid high inflation), is interpreted to have had an impact. Following the Trump administration's announcement of a 25% tariff on automobiles on the 26th, the announcement of reciprocal tariffs on the 2nd of next month has been predicted, strengthening the preference for safe assets amid tariff uncertainty.

The core Personal Consumption Expenditures (PCE) price index for March, announced on this day, rose by 2.8%, exceeding market expectations. This heightened inflation concerns, and the University of Michigan's consumer sentiment index for March also deteriorated more than expected, further fueling stagflation concerns, which provided upward momentum for gold prices.

Peter Grant, senior metals strategist at Zaner Metals, said, "Concerns related to tariffs, trade, and geopolitical uncertainty are increasing, sustaining demand for safe assets."

Meanwhile, Goldman Sachs previously raised its year-end gold price forecast to $3,300 per ounce.

Reporter Minjae Lee tobemj@wowtv.co.kr