With the Trump administration announcing a 25% tariff on imported cars and implementing a "reciprocal tariff" plan on April 2, safe haven asset gold surged in response. On Thursday (March 27th), spot gold briefly broke through $3033/ounce to $3038.46/ounce, and market panic continued to heat up. Analysts generally expect gold prices to break through the $3100 mark in the second quarter.

1. The escalation of the trade war ignites the gold market

Trump suddenly announced new car tariffs on Wednesday, causing a sharp deterioration of global trade tensions. Spot gold rose 0.65% at one point, while futures gold climbed 0.7%, continuing its strong performance since reaching a historic high of $3057 on March 20th

2. Institutions collectively sing more gold

SPDR ETF Strategy predicts that gold prices will exceed $3100 in the second quarter and may rise another 8-10% by the end of the year.

Goldman Sachs urgently raised its forecast: raising its 2025 gold price target from $3100 to $3300, mainly due to the inflow of ETF funds and central bank demand for gold purchases.

3. Stagflation clouds the market

Analysts warn that new tariffs may simultaneously drive up inflation and suppress growth, creating a "stagflation" dilemma.

Minneapolis Fed President Kashkari stated that there is still work to be done to achieve the 2% inflation target, implying that monetary policy faces a dilemma.

The market is focused on Friday's US PCE data, which may affect the Federal Reserve's interest rate decision-making path.

summarize

When Trump swings his tariff stick again, gold is becoming the brightest safe haven star in this trade storm. As the deadline of April 2nd approaches and institutions continue to raise optimistic expectations, gold prices may be brewing a new round of historic breakthroughs. In this era of stagflation, where economic growth slows down and inflationary pressures coexist, the dominant position of gold is becoming increasingly unshakable.