Gold prices surged past the $3,000 per ounce threshold for the first time in history today, continuing a strong rally fueled by trade tensions and expectations of U.S. interest rate cuts.
Spot gold rose 0.3% to $2,997.75 per ounce in mid-morning trading after briefly reaching a record high of $3,004.86 earlier. Meanwhile, U.S. gold futures climbed 0.6% to $3,009.10.
Safe-Haven Demand Drives Rally
Gold, traditionally considered a safe-haven asset during periods of economic and geopolitical uncertainty, has gained more than 14% this year. Concerns over rising inflation, market volatility, and escalating trade disputes—particularly U.S. President Donald Trump’s latest tariff threats—have all contributed to its upward momentum.
The global trade war has intensified, with Trump threatening to impose a 200% tariff on European alcohol imports, further unsettling financial markets. This uncertainty has driven investors toward assets perceived as stable, such as gold.
“Amid escalating geopolitical tensions, rising trade tariffs, and growing financial market uncertainty, investors are increasingly seeking stability—and they are finding it in gold,” said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany.
Strong physical demand, central bank purchases, and investment inflows have also supported gold’s performance. Additionally, growing expectations that the U.S. Federal Reserve may ease monetary policy have bolstered the precious metal’s appeal, as lower interest rates make non-yielding assets like gold more attractive.
Analysts Predict Further Gains
Looking ahead, analysts remain optimistic about gold’s trajectory. Ole Hansen, head of commodity strategy at Saxo Bank, reaffirmed his forecast of $3,300 per ounce for the year, noting that a strong close above $3,000 today could indicate continued gains in the coming weeks.
ANZ analysts also projected further appreciation, predicting that gold could reach $3,050 by 2025.
Other Precious Metals Mixed
While gold led the charge, other precious metals saw mixed trading. Silver edged up 0.2% to $33.87 per ounce, while platinum declined 0.7% to $987.30. Palladium, meanwhile, gained 0.6% to $963.78.
With ongoing trade uncertainties and central bank policies likely to remain key market drivers, investors will be closely watching gold’s next moves as it continues to test new highs.
