Gold prices could reach as high as $4,500 per ounce in an extreme risk case by the end of 2025, foreign investment bank Goldman Sachs said, citing escalating US-China trade war and fears of recession.

However, Goldman Sachs raised gold price target to $3,700 an ounce by end-2025, its third such hike this year, reports said. Earlier in March, the investment bank had hiked its 2025 gold price target to $3,300 per ounce.

Heightened concerns over the US economy, fueled by an escalation in the US-China trade war, have increased the appeal of gold as a recession hedge, according to an investment bank, reports said.

Gold prices crossed the $3,200-per-ounce mark for the first time last week, reaching a record high of $3,245.69 per ounce, as rising geopolitical and economic uncertainty rattled global markets. Demand for the yellow metal remained robust across both physical purchases and exchange-traded funds (ETFs).

Goldman Sachs stated that it was positioning itself to hedge against the growing risk of a US recession through gold, citing increased investor interest in both physical bullion and ETFs in recent weeks.

The surge in demand and prices comes amid intensifying trade tensions between the US and China. The US raised tariffs on Chinese imports to a cumulative 145%, prompting retaliatory tariffs from Beijing of up to 125% on American goods.

In addition, US President Donald Trump announced plans to impose steep "reciprocal" tariffs on key US trading partners. While implementation has been delayed by 90 days, a universal 10% tariff has already been enforced. The administration also indicated forthcoming targeted tariffs on electronics and pharmaceuticals.

Several major global central banks, particularly in Asia, have ramped up their gold purchases in recent months. This trend reflects growing concerns over a potential U.S. recession, especially amid heightened economic uncertainty under the Trump administration.

Gold Price Today

Gold prices fell on Monday as US President Donald Trump eased trade tensions by granting tariff exemptions on smartphones, computers and other electronics primarily imported from China.

Spot gold was down 0.4% at $3,223.67 an ounce. Bullion hit a record high of $3,245.28 in the previous session, Reuters reported. US gold futures eased 0.1% to $3,240.90.