Why Are Gold Prices Rising? Here Are the Reasons.

The Reason for the Rise in Gold Prices

Recently, gold prices have reached new record levels due to U.S. President Donald Trump's threats of tariffs on China and potential interest rate cuts in the U.S. Investors are turning to safe haven investments in response to increasing uncertainties and market volatility.

Gold Prices Reach Record Levels

Spot gold reached $4,075 at 3:00 PM (UTC+3), marking a 1.5% increase. U.S. gold futures are trading at $4,095 with a 2% gain. In Turkey, the price of gram gold is hovering around 5,477 lira. These increases are attributed to investors' search for safe assets.

Silver Also Hits Record

Alongside gold, silver prices have shown a remarkable rise. Spot silver increased by 2% to $51.36, while silver futures gained 5% to reach $49.65. The rise in both metals is closely monitored due to the uncertainties and tensions in the markets.

Trade Wars and Market Expectations

Last Friday, Trump's statements reignited the trade wars between the U.S. and China. Trump indicated that as a retaliation for China's restrictions on critical mineral exports, he would impose a 100% tariff on Chinese goods imported to the U.S. and introduce new export controls by November 1.

However, Trump's social media post stating "Don't worry about China, everything will be alright!" seems to have confused investors.

Promising Predictions

UBS analyst Giovanni Staunovo notes that the impact of trade tensions on the markets continues. He has set a target price of $4,200 per ounce for gold, believing that strong investments and central bank demand will support precious metals.

Bank of America has also revised its price forecasts for precious metals. For 2026, the gold price forecast has been raised to $5,000 per ounce, and the silver price forecast to $65. This makes it the first major bank to raise its 2026 gold price forecast to $5,000.