Gold volatility rises as two investment banks unveil new price targets

Gold prices turned volatile after starting the week with a record rally, followed by profit-taking at elevated levels. However, persistent global risk factors helped push prices higher once again.

Spot gold climbed to a fresh all-time high of $5,111 per ounce before late-session selling pressure erased part of the gains, with prices closing at $5,055.

In early trading today, losses briefly deepened, dragging spot prices back toward the $5,000 level.

Trump’s trade stance fuels safe-haven demand

US President Donald Trump’s aggressive trade rhetoric kept risk sentiment under pressure, reinforcing demand for safe-haven assets such as gold.

Trump announced a 25% tariff on cars, timber, and pharmaceuticals imported from South Korea, reigniting concerns over escalating global trade tensions.

Tim Waterer, Chief Market Analyst at KCM Trade, said Trump’s disruptive policy approach continues to highlight precious metals as defensive assets, adding that tariff threats against Canada and South Korea make gold increasingly attractive as a safe haven.

Following these developments, spot gold rebounded from its pullback, rising 0.50% to trade around $5,080 per ounce.

Sharp swings also hit silver

Silver mirrored gold’s volatility. After hitting a record high of $117.73 on Monday, spot silver fell sharply to the $102 level.

During the second trading session of the week, silver recovered part of its losses, gaining 1.24% to trade at $109.83 per ounce.

New forecasts from two major banks

Amid the market turbulence, Morgan Stanley revised its bullish outlook on gold, raising its long-term price targets.

The bank set a target of $5,700 per ounce for the second half of 2026, citing ongoing geopolitical uncertainty, rising inflows into exchange-traded funds, and sustained central bank buying.

Morgan Stanley noted that strong ETF demand is rapidly depleting already limited inventories following years of supply deficits.

Meanwhile, Societe Generale analysts forecast that gold could reach $6,000 per ounce by year-end, revising up from their previous $5,000 projection.

However, the bank cautioned that continued political turmoil could render even this higher forecast conservative.