Investing.com-- Gold prices crossed above $3,100 per ounce for the first time ever Thursday, buoyed by renewed safe haven demand after U.S. President Donald Trump imposed 25% trade tariffs on all automobile imports, marking an escalation in his tariff agenda.

Goldman Sachs also hiked its 2025 gold price target, forecasting strong central bank demand and strong inflows from exchange-traded funds.

Trump’s tariffs- which will be imposed starting from April 3 along with a host of other duties, sparked a risk-off move across global markets, with Wall Street and Asian stocks clocking deep losses.

This drove safe haven plays into gold, amid growing fears that Trump will make good on his other tariff threats.

Spot gold rose 1.2% to $3,056.60 an ounce by 5:24 PM ET, after hitting a record $3,059.30. Gold futures expiring in May rose 1.5% to close at $3099.20oz, after hitting a record of $3,102.

Gold underpinned by haven demand on Trump tariff woes

While gold saw some profit-taking earlier this week, it still remained close to record highs as uncertainty over U.S. trade and economic policies underpinned haven demand.

Trump’s latest auto tariffs will affect several major economies, including Japan, Europe, and South Korea, and are also expected to drive up U.S. car prices, potentially underpinning inflation in the country.

Trump is set to announce a host of reciprocal tariffs on April 2 against at least 15 major U.S. trading partners. The U.S. President has also threatened to impose tariffs on key commodity imports, as well as other sectors such as semiconductors and pharmaceuticals.

Europe, Canada, China, and Mexico have decried the tariffs and threatened retaliatory measures, which could spark a global trade war that could dent economic growth. This kept traders largely biased towards gold as a safe haven.

Other precious metals also surged on Thursday. Platinum futures rose 2.07% to $989.40/oz, while silver futures rose 3.2% to $35.32/oz.

Among industrial metals, copper prices remained underpinned by expectations of tighter supplies, especially if Trump imposes tariffs on copper imports. Benchmark copper futures on the London Metal Exchange fell 0.7% to $9,813.48 a ton, while U.S. copper futures fell 2.3% to $5.12 a pound.

U.S. copper futures hit a record high this week on bets that Trump’s tariffs will severely crimp physical copper supplies in the country.

Goldman Sachs hikes 2025 gold price forecast to $3,300/oz

Goldman Sachs hiked its end-2025 gold price forecast to $3,300/oz from $3,100/oz, forecasting stronger-than-expected ETF inflows and sustained demand from central banks, especially in Asia and emerging markets.

Goldman Sachs expects major Asian central banks to keep buying gold aggressively for the next three to six years to meet higher gold reserve targets.

On the ETF front, Goldman Sachs expects more inflows from haven-seeking traders, especially in the event of a U.S. recession. This, coupled with increased demand for gold as a hedge, could push prices as high as $3,680/oz by end-2025.

(Ambar Warrick contributed to this report)