Gold Prices Expected to Continue Rising This Week
88% of experts in a Kitco survey are optimistic about gold prices this week, primarily due to uncertainty surrounding import tariffs and U.S. inflation. Analysts suggest that persistent economic concerns and geopolitical tensions will likely continue to drive investors towards gold as a safe-haven asset.
Last week, global spot gold prices rose more than 2%, marking the sixth consecutive week of gains for the precious metal. The surge has been attributed to escalating U.S.-China trade tensions, which have fueled market instability and increased demand for safe-haven assets like gold. On February 7, gold prices hit a new peak of $2,886 per ounce, setting record highs in six of the last seven trading sessions.
A weekend survey conducted by Kitco among analysts, investors, and bank executives revealed that 88% predict prices will rise in the coming week. None of the respondents expect a decline, while 12% believe prices will remain stable. This strong bullish sentiment reflects confidence in gold’s continued momentum amid ongoing economic uncertainties.
"Gold prices are at an all-time high, and there are no signs of the upward trend disappearing anytime soon," said James Stanley, a senior market strategist at Forex.com. His sentiment is echoed by Colin Cieszynski, a market strategist at SIA Wealth Management, and Adrian Day, Director of Adrian Day Asset Management. "The driving factors behind gold's rise over the past year remain intact. The market may eventually pause for a correction, but that time has not yet arrived," Day stated.
Investor demand for safe-haven assets has surged, driven by new policy measures from U.S. President Donald Trump. "With rising concerns over import tariffs and inflation, gold remains one of the safest investment options. If we look at the trend over the past week, uncertainty surrounding the implementation and timing of U.S. tariffs continues to boost demand for gold," explained John Weyer, Director of Risk Management at Walsh Trading.
On February 1, President Trump signed an executive order imposing a 25% tariff on goods from Canada and Mexico and a 10% tariff on Chinese imports. However, just two days later, on February 3, he announced a temporary delay in tariffs on Mexico and Canada after reaching agreements on curbing smuggling and immigration. Meanwhile, tariffs on Chinese imports took effect on February 4, prompting immediate retaliatory measures from Beijing. The uncertainty surrounding these trade policies has further strengthened gold’s appeal.
Despite these developments, Weyer pointed out that some investors speculate the U.S. Federal Reserve (Fed) may soon raise interest rates after recent U.S. inflation reports. The Fed lowered rates three times last year in response to cooling inflation but maintained them during its most recent meeting to reassess economic conditions. Lower interest rates typically benefit gold by reducing the opportunity cost of holding the non-yielding asset.
"Ongoing uncertainty in U.S. policy will continue to drive central banks to increase their gold reserves. This week, Chinese authorities announced that their central bank had purchased gold for the third consecutive month after a six-month hiatus," noted Marc Chandler, Director of Bannockburn Global Forex. Other central banks may follow suit, reinforcing gold’s upward trajectory.
This week, Citi Research raised its three-month gold price forecast from $2,800 to $3,000 per ounce. Similarly, UBS Bank believes gold could reach the $3,000 mark by the end of the year, while Goldman Sachs predicts this level will be achieved by the second quarter of 2026. These bullish forecasts underscore the continued investor confidence in gold’s long-term potential.
Looking ahead, market participants will closely monitor Federal Reserve Chairman Jerome Powell's testimony before the U.S. Senate and House of Representatives. Additionally, investors will pay attention to key economic indicators such as the U.S. Consumer Price Index (CPI), Producer Price Index (PPI), January retail sales data, and weekly jobless claims. These data points are expected to have a significant impact on gold prices, influencing both short-term market sentiment and long-term investment strategies.
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