Mumbai, March 31 || As the US reciprocal tariff deadline looms, gold prices on Monday hit a record high of $3,106 per ounce for the first time, with people rushing towards accumulating the safe-haven asset amid global uncertainties.
The yellow metal has gained more than 18 per cent this year as retail investors continue to drive demand. Goldman Sachs, Bank of America, and UBS have raised their price targets for gold this month.
According to a report by BofA Global Research, the bullion is likely to reach $3,500 per ounce in the next 18 months if non-commercial purchases increase by 10 per cent.
"Gold could potentially reach USD3,500/oz over the coming 18 months, if non-commercial purchases increase by 10 per cent," it said in a note, adding that central banks around the world could increase their gold holdings to over 30 per cent from the current 10 per cent (on average) to make their portfolios more efficient.
Gold emerged as one of the top-performing asset classes in India in 2024, with a remarkable 21 per cent return year-on-year (YoY). The Indian market has shown a strong investment interest in gold, driven by record inflows into gold ETFs.
In 2024, Indian gold ETFs saw net inflows of Rs 112 billion, adding 15 tonnes to their holdings, which reached 57.8 tonnes by the end of the year, according to Motilal Oswal Private Wealth.