Gold hits record $3,000 per ounce for first time amid trade war tensions

The relentless emergence of golden has taken prices of the precious metallic supra the psychologically cardinal $3,000 per ounce people for the archetypal time, arsenic geopolitical and economical uncertainty sent investors rushing into the safe-haven asset.

Spot golden deed a grounds $3,004.86 per ounce connected Friday, marking its thirteenth all-time precocious successful 2025. Prices person already climbed 14% this year, aft surging 27% successful 2024.

"With continued cardinal slope buying, determination are aggregate factors driving demand. In a backdrop of geopolitical uncertainty and ongoing tariff changes, appetite for golden remains strong," said Standard Chartered expert Suki Cooper.

Since the commencement of U.S. President Donald Trump's administration, protectionist policies person jolted planetary markets, with his tariffs triggering swift retaliation from China and Canada.

"With equity markets selling disconnected and unpredictable governmental risks, we are starting to spot a instrumentality of Western investors to gold, which could propel it to overmuch higher levels," said John Ciampaglia, CEO of Sprott Asset Management. [GOL/ETF]

"We see golden arsenic an 'insurance policy' and root of liquidity successful hard marketplace environments."

Tariffs substance ostentation fears and commercialized tensions, driving investors to golden arsenic a safe-haven hedge.

Meanwhile, golden stocks successful COMEX-approved warehouses deed a grounds 40.56 cardinal ounces, arsenic traders rushed to screen positions amid tariff uncertainty. But inflows person slowed successful caller weeks.

Federal Reserve

Traders are doubling down connected U.S. Federal Reserve complaint cuts, present expecting 3 quarter-point reductions this year, up from 2 conscionable days ago.

The Fed has slashed rates by 100 ground points since September, pausing successful January, but markets present expect cuts to resume successful June. That is keeping the dollar nether pressure, a stark displacement from erstwhile Trump's protectionist policies strengthened the currency.

"The ostentation information is helping to springiness the marketplace assurance that the easing rhythm volition continue, fixed concerns astir ostentation and growth," said Standard Chartered expert Suki Cooper.

ETF Demand

Investor request for golden is surging, with physically-backed golden exchange-traded funds (ETFs) signaling their largest play inflow since March 2022, according to the World Gold Council's February data.

The SPDR Gold Trust (GLD), the world's largest gold-backed ETF, saw holdings emergence to 907.82 metric tons connected February 25, the highest since August 2023. [GOL/ETF]

"There volition apt beryllium accrued flows into safe-haven assets similar gold, particularly arsenic investors determination distant from equity maturation stocks amid rising uncertainties and aboriginal concerns," said Dina Ting, Head of Global Index Portfolio Management astatine Franklin Templeton.

She noted that portion concern strategies vary, a 5% to 10% golden allocation tin connection effectual diversification.

Central Bank Demand

Gold's emergence is getting different tailwind ...