Gold prices reached a new high of $3,106 per ounce on Monday for the first time as the US reciprocal tariff deadline approaches, and investors are racing to buy the safe-haven asset in the face of global unpredictability.

Because demand is still being driven by individual investors, the yellow metal has increased by more than 18% this year. This month, UBS, Bank of America, and Goldman Sachs all increased their price predictions for gold.

According to research by BofA Global Research, if non-commercial purchases rise by 10% over the following 18 months, the price of bullion is expected to reach $3,500 per ounce.

In a note, it stated that “Gold could potentially reach 3,500/oz over the coming 18 months if non-commercial purchases increase by 10 percent.” It also stated that in order to improve the efficiency of their portfolios, central banks worldwide could raise their gold holdings from the current average of 10% to over 30%.

With an astounding 21% year-over-year (YoY) return in 2024, gold became one of the best-performing asset classes in India. Due to high inflows into gold ETFs, the Indian market has shown a significant interest in gold as an investment.

According to Motilal Oswal Private Wealth, Indian gold ETFs experienced net inflows of Rs 112 billion in 2024, increasing their holdings by 15 tonnes to 57.8 tonnes at the end of the year.

In 2024, the Reserve Bank of India (RBI) added 72.6 tonnes of gold to its holdings, increasing its total to 876 tonnes, continuing its pattern of gold accumulation. The RBI has been a net buyer of gold for the sixth year in a row. Currently, 10.6% of the RBI’s foreign currency reserves are made up of gold.

The desire for jewelry was impacted by high costs, but there was still a substantial demand for actual gold, particularly bars and coins, as investments.

According to experts, silver is advised for more tactical allocations, even if gold may be a long-term strategic asset in portfolios.