Gold Surges Past $3,100 As Tariff Uncertainty Sets Silver Ratio Trade

"Tariff issues will continue driving (gold) prices higher until there is some finality to the tit-for-tat campaign," Edward Meier said per Reuters.

The yellow metal gained nearly 19% in 2025, propped by geopolitical concerns and central bank demand. Over the last 15 years, foreign ownership of US treasuries has converged with gold as a percent of central bank reserves. Treasury ownership sank from 25%, while gold reserves rose from 7% to reach the 15% mark.

As gold continues to break records, major financial institutions have revised their price forecasts upward. Goldman Sachs expects it to reach $3,300 per ounce by the end of the year, up from its previous target of $3,100.

Despite silver's solid performance, it has not yet exceeded the high from last October, when it traded at $34.78 per ounce. The gold-to-silver ratio, a popular measure of metal's relative performance, has widened, reflecting gold's stronger momentum.

More aggressive strategies might employ leveraged ETFs like ProShares Ultra Gold (NYSE:UGL) and ProShares Ultra Silver (NYSE:AGQ), which correspond to double the daily performance of the underlying benchmark.

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