Gold Prices Could Rally to $3,500 Amid Rising Global Tensions

Gold prices are expected to continue their upward rally, driven by surging demand for safe-haven assets amid escalating geopolitical tensions and ongoing fears of a global trade war.

“We see no immediate resolution in sight, which leads us to forecast gold prices in the range of $3,000 to $3,500 per troy ounce, with an average price of around $3,100 per troy ounce—up 29.8% year-over-year,” wrote Wilbert Arifin, an analyst at Mirae Asset Sekuritas Indonesia, in his latest report.

So far this year, gold prices have surged by 24.2%, reaching $3,260 per troy ounce. On April 22, 2025, gold hit an all-time high, with the spot price reaching $3,500.05 per troy ounce.

Financial commodities analyst Ibrahim Assuaibi also noted the potential for prices to approach $3,410. “If that level is broken, gold could spike even further to $3,500,” he stated.

According to Ibrahim, one of the main drivers behind the gold price rally is the intensifying geopolitical situation in the Middle East. He pointed to a recent Houthi attack on Ben Gurion Airport over the weekend, which prompted Israel to prepare for retaliation. “Israel has expanded its ground operations in the Gaza Strip in an attempt to fully control the region,” he explained.

Adding to the global uncertainty, Ibrahim highlighted renewed tensions over Greenland following U.S. President Donald Trump’s latest threat to consider military action to gain control of the territory. “This is on top of the ongoing war in Europe between Russia and Ukraine,” he added.

Meanwhile, the U.S. Federal Reserve is expected to maintain its benchmark interest rate during this week’s meeting. Ibrahim suggested this move might provoke another outburst from President Trump, who could renew his criticism of Fed Chair Jerome Powell. “Trump is also likely to pressure Powell into cutting interest rates,” he said.