Gold surged to a record high on Tuesday, surpassing the $3,000 milestone as escalating global uncertainties and trade tensions fueled demand for the safe-haven asset.
Spot gold climbed 0.6% to $3,017.84 per ounce as of 0715 GMT after briefly reaching an all-time high of $3,018.66. The metal first breached the $3,000 threshold on March 14. Meanwhile, U.S. gold futures advanced 0.7% to $3,027.00.
Widely regarded as a hedge against geopolitical and economic instability, gold has gained over 14% since the beginning of the year. The precious metal has set 14 record highs since U.S. President Donald Trump took office in January, with his ongoing tariff war stoking investor concerns. The trade measures include a 25% duty on steel and aluminium implemented in February, along with additional sectoral tariffs set to take effect on April 2.
“While gold may face some consolidation due to the speed of its latest move, the combination of geopolitical and geo-economic uncertainty, rising inflation, lower rates and a weaker U.S. dollar continue to provide powerful tailwind to investment demand,” analysts at the World Gold Council (WGC) said.
The U.S. dollar hovered near a four-month low, making gold more attractive to foreign buyers.
Amid rising trade and geopolitical tensions, ANZ revised its gold price forecasts upward, projecting $3,100 per ounce over the next three months and $3,200 within six months. The WGC noted that if gold sustains its position above $3,000 for the coming weeks, it could spur further buying activity.
Investors are also eyeing the Federal Reserve’s economic projections this week, which could offer clearer insight into the impact of Trump’s policies.
“Israeli air strikes may also see tensions flare in the Middle East again and that could add to the litany of drivers pushing gold higher,” Capital.com financial market analyst Kyle Rodda said.
In other precious metals, silver edged up 0.2% to $33.90 per ounce, platinum rose 0.4% to $1,004.16, and palladium climbed 0.7% to $971.75.
