Gold prices soared to a record high of 28% in 2024 after previously rising around the same value in 2010. It continued the spike in 2025 and entered the year on the front foot surging 18%. However, it faced corrections this month and dipped below the $2,900 mark. Now that Trump’s trade tariffs went live on Tuesday, the US stock market and the dollar went south in the charts. The dip is alarming as the development suggests that investors remain skeptical about trade tariffs and their fallout.

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Marissa Salim, Senior Research Lead at the World Gold Council wrote in a recent note that gold prices could surge much higher. She wrote that central banks of developing countries are massively accumulating the precious metal in their reserves. This would lead to higher gold prices as the demand for the glittery metal is higher than usual.

“The sustained buying highlights the strategic importance of gold in official reserves, particularly as central banks navigate heightened geopolitical risks,” wrote Marissa. “The shift from armed conflict to broader economic tensions has reinforced their net buying trend, especially apparent since 2022.”

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Marissa explained that central banks purchased more when gold prices dipped entering the accumulation phase. “Many central banks appear to have strategically leveraged temporary price pullbacks as buying opportunities, while sales have remained limited and largely tactical during price rallies,” read the note.

When Will Gold Prices Cross $3,000?

Goldman Sachs predicts that gold prices will not only breach the $3,000 mark, it could surge to $3,300 in 2025. The investment bank’s research analyst Lina Thomas wrote in the latest report that the XAU/USD index could be unstoppable.

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“The increased forecast is underpinned by higher-than-expected demand for gold from central banks, which have been increasing their reserves of the commodity since the freezing of Russian central bank assets in 2022, following Russia’s invasion of Ukraine,” the investment bank wrote.