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Gold Prices Soar: ANZ Forecasts Upsurge Amid Economic Turmoil and Trade Tensions

March 18, 2025
Smart Money

Gold Prices Hit New Highs Amid Market Uncertainty

Dubai, United Arab Emirates, March 18, 2025 – The international gold market reaches a new milestone as prices have soared past the $3,000 mark for the second time. This surge comes amid growing economic concerns and geopolitical tensions, largely driven by U.S. tariff policies enacted under President Donald Trump. According to a recent research note by Australia and New Zealand Banking Group (ANZ), the bank has revised its short-term gold price forecasts upwards, projecting a price of $3,100 per ounce for the zero to three-month outlook and $3,200 per ounce for the six-month outlook.

Continued Bullish Sentiment

The recent spike in gold prices aligns with ANZ’s longstanding bullish outlook on the precious metal. The bank attributes this optimism to a confluence of factors, including escalating geopolitical tensions, a shift towards more accommodating monetary policies, and robust purchasing activity from central banks. Since the beginning of the year, gold has appreciated by more than 14%, and it has set a record high on 14 occasions.

"Gold is traditionally viewed as a safe-haven asset amidst geopolitical instability," ANZ noted in its report. The bank’s analysis highlights that fears surrounding import tariffs have tightened liquidity in the London spot market, resulting in supply constraints flowing into the U.S. This situation has led to increased arbitrage opportunities, characterized by a widening spread between Comex futures and London spot prices.

Implications for Silver Prices

While the focus has primarily been on gold, the bank’s report also discusses the implications for silver, reflecting on its market dynamics. ANZ suggests that silver trading in the near term is likely to fluctuate within the $34 to $36 per ounce range, given existing market pressures. At the time of reporting, spot silver was valued at $33.89 an ounce, reflecting a modest gain of 0.1%.

Despite the challenges posed by tariff-related issues, ANZ analysts remain optimistic about the resilience of industrial demand for silver. They assert that investment demand will play a critical role in supporting silver’s price levels moving forward. The dynamic between supply and demand in the silver market is expected to create volatility in the near future.

Conclusion

As investor sentiment continues to gravitate towards safe-haven assets like gold in light of economic and geopolitical uncertainties, upcoming trading sessions will likely further test these price projections. With both gold and silver markets feeling the effects of international trade policies, analysts and investors alike will be keenly observing shifts in market conditions.

This latest report from ANZ underscores the ongoing complexities of the precious metals market and highlights the pivotal role of macroeconomic factors in shaping price movements. As these developments unfold, stakeholders in the commodities sector must stay informed and prepared to navigate a potentially volatile trading environment.

Reporting by Rahul Paswan in Bengaluru; Editing by Jacqueline Wong and Stephen Coates. For more insights and updates on financial markets, stay tuned to Smart Money Mindset.