Gold Price Forecasted to Hit $3,500 on Weaker U.S. Economy and Geopolitical Risks

Gold prices are expected to soar to $3,500 per ounce within the next three months, driven by a weakening U.S. economy, persistent inflation, and heightened geopolitical uncertainty. Global financial analysts have revised their gold price target upwards from $3,300 to $3,500, with the new trading range set between $3,300 and $3,600.

The outlook is buoyed by fresh data indicating a sluggish labor market in the United States. Job creation dropped sharply, with only 73,000 jobs added in July after a revised 14,000 in June. This decline has increased speculation that the Federal Reserve may cut interest rates in September, with market tools placing the probability at over 80%.

A softer dollar is also contributing to gold’s rise, as it boosts the metal’s appeal to investors. In addition to economic concerns, growing geopolitical tensions—particularly the Russia-Ukraine conflict—and recently imposed tariffs by the U.S. government on imports from several countries, including Canada and India, have further bolstered demand for the safe-haven asset.

Analysts believe that these tariffs, introduced under the current U.S. administration, will likely remain in place for the foreseeable future, adding pressure to global trade dynamics.

Meanwhile, demand for gold has surged across investment, central banking, and jewelry sectors. Since mid-2022, overall demand has climbed by over 30%, nearly doubling prices by the second quarter of 2025. As of Monday morning, gold traded at approximately $3,357 per ounce, edging closer to the projected target.