Gold broke the $3,000 an ounce price threshold for the first time on Friday as investors sparked a rally in the safe-haven asset amid mounting economic uncertainty due to President Donald Trump’s tariff war.

Spot gold prices hit an all-time high of $3,004.86 earlier in Friday’s trading session before dipping back below the $3,000 level as traders took profits.

Gold’s surge above the historic $3,000 milestone was driven by “beleaguered investors seeking the ultimate safe-haven asset given Trump’s tumult on stock markets,” said Tai Won, an independent metals trader.

WHY GOLD PRICES COULD HIT $3,000 DESPITE VOLATILITY

Traditionally viewed as a safe store of value during geopolitical turmoil, gold bullion has risen nearly 14% so far this year, driven in part by concerns over the impact of Trump’s tariffs and retaliation by trading partners – which have contributed to the recent stock market sell-off.

“Real asset money managers, particularly in the West, needed a strong stock market and economic slowdown scare to return to gold – and that’s happening now,” said Ole Hansen, head of commodity strategy at Saxo Bank.

WHY BANKS ARE FLYING GOLD BARS ON COMMERCIAL FLIGHTS FROM LONDON TO NYC

Gold bars

Gold prices have also been bolstered by demand from central banks, with China boosting its reserves for the fourth straight month in February.

“Central banks continue record-level gold acquisitions, seeking to diversify away from an increasingly volatile U.S. dollar,” said GoldCore CEO David Russell.

Expectations that the Federal Reserve will return to easing its monetary policy in the next few months have also helped gold, as traders expect interest rate cuts to resume in June, according to the CME FedWatch tool.

“There are good reasons for why investment demand is likely to remain robust… heightened geopolitical and geo-economic risk, higher inflation expectations, potentially lower rates and the uncertainty that markets are feeling,” said Juan Carlos Artigas, global head of research at the World Gold Council.

Reuters contributed to this report.

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