Gold Surpasses $3,000 Milestone Amid Market Uncertainty
Gold soared past the psychologically significant $3,000 an ounce mark for the first time today, extending its historic rally as rising trade tensions and expectations of US interest rate cuts enhance its appeal as a safe-haven asset.
Spot gold climbed 0.3% to $2,997.75 an ounce in mid-morning trading, after reaching a record high of $3,004.86 earlier in the session. Meanwhile, US gold futures gained 0.6% to $3,009.10.
Traditionally considered a hedge against inflation and economic instability, gold has surged over 14% this year. The rally has been fueled by concerns over US President Donald Trump's tariff policies and a recent downturn in stock markets.
The escalating global trade war continues to rattle financial markets and stoke recession fears. On Thursday, Trump threatened to impose a 200% tariff on European alcohol imports, further intensifying tensions.
"With geopolitical risks mounting, trade tariffs rising, and financial uncertainty deepening, investors are increasingly turning to gold as a source of stability," said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany.
He added that strong physical demand and continued safe-haven buying suggest gold’s upward momentum remains intact.
The metal’s strong performance this year has also been underpinned by robust central bank purchases, sustained investment inflows, and growing expectations of monetary policy easing by the US Federal Reserve.
The Fed is widely expected to maintain its benchmark interest rate at its upcoming Wednesday meeting.
In other precious metals, silver edged up 0.2% to $33.87 an ounce, platinum dipped 0.7% to $987.30, and palladium gained 0.6% to $963.78.