Gold prices have reached an all-time high, surpassing $3,000 an ounce for the first time in history.
The surge comes as investors seek safe-haven assets amid escalating trade tensions and geopolitical uncertainty.
On Friday, gold briefly hit $3,005 before pulling back slightly to trade at $2,994. The precious metal has gained nearly 14% this year, driven by concerns over President Donald Trump’s tariff policies and broader economic instability.
Jason Hollands, managing director at UK wealth management firm Evelyn Partners, described gold as “the panic asset of choice,” attributing its rise to the uncertainty surrounding global trade. Recent tariff hikes, including a 25% levy on steel and aluminum imports into the US, have prompted swift retaliatory measures from Canada and the European Union. Further complicating the trade landscape, Trump has threatened a 200% tariff on European alcoholic beverages in response to the EU’s 50% tariff on US spirits.
Market volatility and fears of a potential economic slowdown have driven investors toward gold, which is traditionally viewed as a hedge against inflation and geopolitical risk. A Bank of America survey found that 52% of global fund managers consider gold the best protection against a full-blown trade war.
David Wilson, senior commodities strategist at BNP Paribas, noted that “the Trump administration’s aggressive trade policies and shifting international alliances have introduced a new layer of macroeconomic uncertainty, further boosting gold prices.”
The rally marks one of gold’s most significant bull markets in modern history, according to Daniel Ghali, a senior commodity strategist at TD Securities. Ghali believes macroeconomic funds have been a primary catalyst for the surge, though he cautions that further gains will depend on continued uncertainty.
In addition to trade concerns, the ongoing war in Ukraine has played a role in gold’s ascent. Russia recently rejected a US-proposed 30-day ceasefire, adding to geopolitical instability. Central banks have also increased their gold reserves, diversifying away from the US dollar since Russian assets were frozen following the 2022 invasion of Ukraine.
According to the World Gold Council, central banks added 1,045 metric tons of gold to global reserves last year. The People’s Bank of China, in particular, has continued purchasing gold, reflecting concerns about potential economic weaponization of the dollar.
The record-breaking gold price highlights investor anxiety amid ongoing trade disputes, inflation fears, and geopolitical tensions. The US stock market has already lost $5 trillion in recent weeks, and with no immediate resolution in sight, demand for safe-haven assets like gold is likely to remain strong.
