Gold futures (GC=F) surged to a new all-time high on Monday due to concerns about an escalating trade war, driving investors towards the safe-haven asset.

The price of futures peaked at $3,160 per ounce before slightly retracting as stock markets struggled. However, gold has seen an increase of over 18% in the first quarter, marking its strongest quarterly performance since 1986.

At the same time, spot gold exceeded $3,127 per ounce in anticipation of counter tariffs projected to be declared by the Trump administration on Wednesday.

In recent times, institutional investors have been sending large quantities of gold to the US in anticipation of possible metal tariffs.

Recent data indicating stubborn inflation and low consumer confidence, paired with a decline in the US dollar index (DX-Y.NYB), have also bolstered commodity prices as stocks like the S&P 500 (^GSPC) and Nasdaq (^IXIC) have faced declines.

Experts on Wall Street have been revising their gold price forecasts higher. Bank of America foresees gold reaching $3,500 per ounce over the next 18 months, with an expected 10% increase in investments from China, central banks, and ETF purchases by investors.

JPMorgan analysts have questioned the possibility of gold reaching $4,000, given its swift price surge over the past year. The analysts highlighted that gold saw a notable rise from $2,500 to $3,000 in just 210 days, a much quicker pace compared to previous $500 increments.

Gold remained on an upward trend as investors sought refuge in the precious metal amidst trade war concerns and economic uncertainties. Goldman Sachs analysts reiterated their bullish stance on gold but mentioned potential events that could present better entry points for investors, such as a peace deal between Russia and Ukraine or significant government actions in response to geopolitical tensions.