*

Trump unveiled a 25% tariff on imported cars and light

trucks

*

Gold could breach $3,100 in 2Q, analyst says

*

Goldman raised end-2025 gold price forecast to

$3,300

from $3,100

(Adds analyst comment, updates with mid-session trading)

By Anushree Mukherjee and Anjana Anil

March 27 (Reuters) - Gold prices rose on Thursday as

U.S. auto tariffs ratcheted up global trade tensions ahead of an

April 2 deadline for reciprocal tariffs from the world's largest

economy.

Spot gold was up 0.5% at $3,033.20 an ounce, as

of 0535 GMT. U.S. gold futures gained 0.6% to $3,039.00.

U.S. President Donald Trump on Wednesday unveiled a 25%

tariff on imported cars and light trucks starting next week,

widening the global trade war.

Investors feared that Trump's reciprocal tariffs, expected

to take effect on April 2, might fuel inflation, slow economic

growth and heighten trade tensions.

Concerns over Trump's tariff policies catapulted gold to a

record high of $3,057.21 on March 20.

Aakash Doshi, global head of gold at SPDR ETF Strategy,

expects gold will breach $3,100 in the second quarter and "the

market could potentially push another 8%-10% higher by end-2025

if the current macro and physical market tailwinds sustain for

the yellow metal."

Goldman Sachs on Wednesday raised its end-2025 gold price

forecast to $3,300 per ounce from $3,100, citing

stronger-than-expected ETF inflows and sustained central bank

demand.

Investors await the U.S. personal consumption expenditures

data, due on Friday, which could shed more light on the U.S.

interest rate path.

"The March high near $3,057 is immediate resistance for gold

prices. The $3,100 figure follows next," said Ilya Spivak, head

of global macro at Tastylive.

Last week, the U.S. central bank held benchmark interest

rate steady, but indicated it could cut rates later this year.

Non-yielding bullion tends to thrive in a low interest-rate

environment.

Minneapolis Federal Reserve Bank President Neel Kashkari

said that while the U.S. central bank has made a lot of progress

bringing inflation down, "we have more work to do" to get

inflation to the Fed's 2% target.

Spot silver eased 0.1% to $33.68 an ounce, platinum

fell 0.3% to $971.6 and palladium lost 0.4% to

$964.01.