Gold Soars to New Record Above $3,100

Investment interest in the bullion is up, with North American gold ETF inflows in February being the largest single-month inflow for the region since July 2020.

Rows of gold bars. Rost9/Shutterstock

Gold prices broke through the $3,100 per ounce level in early morning trading on March 31 ahead of a potential new tariff announcement from the United States.

On March 31, spot gold prices rose above $3,127 per ounce before coming down. Gold prices had made large gains in two of the preceding three days, declining marginally on one. As of 10 a.m. ET, March 31, spot gold prices were trading at around $3,113, up by roughly 0.77 percent from the day before.

“Gold is one of the best-performing major commodities this year, up 19 percent year to date, driven by trade frictions, economic uncertainty, central bank buying, and inflows into ETF holdings,” ING Bank said in a March 31 report.

“President Trump’s unpredictable trade policy has been the key driver for gold so far in 2025. We see uncertainty over trade and tariffs continuing to buoy gold prices.”

The recent jump in prices comes just days ahead of the proposed reciprocal tariffs from the United States. President Donald Trump had announced the tariffs in mid-February, citing unfair trade barriers against America.

Under the reciprocal tariff policy, “whatever countries charge the United States of America, we will charge—no more no less,” Trump said.

“For many years, the U.S. has been treated unfairly by other countries, both friend and foe,“ he said. ”This system will immediately bring fairness and prosperity back into the previously complex and unfair system of trade.”

The tariffs are set to take effect on April 2.

Strong central bank buying of gold is adding to the upward pressure on the metal’s price. In January, central banks made net gold purchases of 18 metric tons, said a recent ING Bank post.

“Emerging market central banks led the buying spree, with Uzbekistan, China, and Kazakhstan being the top purchasers,” it said.

“China’s central bank expanded its gold reserves for a third consecutive month, adding five tons in January, despite the record high prices, and more additions are likely.”

In a Feb. 27 market report, Goldman Sachs predicted gold prices to climb to $3,100 per ounce by the end of 2025.

However, continued uncertainty “could also push speculators to increase their long positions in gold,” it said. Such a scenario “would drive the gold price as high as $3,300 per troy ounce by the end of 2025.”

Gold Investment Surge

Investment inflows into gold exchange-traded funds (ETFs) have strengthened in recent times, suggesting strong investor interest in the metal.

ETFs physically backed by gold saw $9.4 billion in global inflows in February, the strongest level since March 2022, according to an analysis by the World Gold Council (WGC).

In North America, inflows turned positive after two straight months of outflows.

“North American demand surged in February, adding US$6.8 billion. This was the largest single-month inflow for the region since July 2020 and the strongest February ever,” WGC said.

Asian inflows to gold also strengthened in February, while inflows from Europe were found to have narrowed.

“We have now seen three consecutive months of strong global inflows which, combined [with] an upward trending gold price, have lifted total assets under management (AUM) to US$306bn, another month-end peak. Meanwhile, holdings rose to 3,353 tons, the highest month-end level since July 2023,” WGC said.

A March 17 WGC report highlighted the speed with which gold prices have risen in recent times.

The jump from $2,500 to $3,000 per ounce took only 210 days. This is considerably faster than the roughly 1,700 days that gold took to make $500 price increments previously, according to the report.

In 2024, gold hit an all-time high more than 40 times. WGC suggested that “a potential perfect storm” is forming for gold.

“While gold may face some consolidation due to the speed of its latest move, the combination of geopolitical and geoeconomic uncertainty, rising inflation, lower rates, and a weaker U.S. dollar continue to provide powerful tailwinds to investment demand,” the report reads.

Meanwhile, multiple U.S. states are looking to make gold and silver alternatives to the U.S. dollar. Recently, the Utah Legislature passed a bill that allows these metals to be used for state payments to vendors. The bill now needs to be signed into law by Gov. Spencer Cox.

In February, Mississippi legislators introduced a bill to make gold and silver legal tender in the state. If it is enacted, citizens will be able to use gold and silver coins for private transactions and to settle debts.