Gold Price Sees Relentless Rally To Fresh Record Highs On Safe Haven Demand

Gold prices continued to surge on Friday, rising to a new record high on safe haven demand amid concerns of regional bank loans and ongoing trade tensions between the U.S. and China.

Spot gold prices climbed to a new high of $4,379 per troy ounce, surging by 1.2%. Gold futures maturing in December gained over 2% to surge to $4,392 before paring some of the gains.

Analysts at HSBC project gold prices to rise to $5,000 an ounce by 2026 on rising risks, according to a Reuters report. “Gold rally likely sustained through 1H'26 by geopolitical risks, economic policy uncertainty and rising public debt,” the firm stated in a recent note, adding that it expects central bank demand for gold to remain high.

A mix of geopolitical risks and banking concerns could support gold prices, said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany, according to the report. “With rate-cut expectations, geopolitical risks, and lingering banking concerns all in play, the environment remains highly supportive for gold," said Zumpfe.

In a recent note, analysts at ING Think highlighted the ongoing tension between President Donald Trump and the Chinese administration, which has threatened retaliation against the Trump administration’s proposed tariff hike.

Analysts at ANZ expect gold prices to reach $4,600 by June 2026, and they noted that the current surge is driven by structural drivers, suggesting that these higher prices are likely to be sustained, according to a report by The Wall Street Journal.

Meanwhile, the SPDR Gold Shares ETF (GLD) was down 0.21% at the time of writing, while the iShares Gold Trust ETF (IAU) edged lower by 0.2%. The GLD and IAU ETFs have both surged nearly 64% year-to-date. Retail sentiment on Stocktwits around the GLD ETF was trending in the ‘extremely bullish’ territory at the time of writing.

Also See: Fed's Miran Says US Is 'Probably' Set For Three 25 Bps Rate Cuts This Year: Report

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