Wall Street continues to increase its optimistic forecasts for gold as the valuable metal reaches new highs. Gold futures hit their 17th record of the year, surpassing $3,060 after President Donald Trump's announcement on auto tariffs fueled concerns of a growing trade war. A drop in the US dollar index also contributed to the rise in gold prices.

Recently, Bank of America analysts raised their gold price target to $3,500 per ounce within the next 18 months, up from the previous $3,000 projection. This increase is based on expectations of a 10% rise in investments, driven by increased purchases from China, central banks, and ongoing acquisitions of physically backed ETFs.

The uncertainty surrounding the Trump Administration's trade policies may further weaken the USD, providing short-term support for gold prices. Factors like this, along with the economic policy mix under the Trump Administration, have led to higher investor interest in gold.

Macquarie Group also foresees gold hitting $3,500 in the third quarter of this year. The metal's impressive 14% surge so far this year has even led JPMorgan analysts to speculate on the possibility of a $4,000 price point.

JPMorgan analysts noted that the price jump from $2,500 to $3,000 took only 210 days, significantly faster than previous increments of $500, which typically took over 1,700 days. They questioned whether the pattern of progressively faster price increases might lead to gold reaching $4,000 sooner than expected.

The analysts attributed a shift in gold demand dynamics to the freezing of Russian foreign assets amid the Ukraine conflict, alongside record-high central bank purchases last year. Gold remains a top bullish pick heading into the future, according to the analysts.