Gold surged to a record high of $3,000 per ounce, as investors sought a safe haven amid ongoing economic uncertainty and market fluctuations.
The rally, which saw bullion rise 14% so far this year, reflects growing concerns over global trade policies, inflation, and geopolitical tensions.
Gold’s climb past $3,000 comes as financial markets react to a mix of political and economic developments. Last week, the S&P 500 entered a correction—a market term for a decline of 10% or more from a recent peak—before rebounding on Friday. The correction was driven by concerns over President Donald Trump’s trade policies, new tariff threats, and broader fears of an economic slowdown.
Despite a temporary retreat, with gold slipping slightly to $2,990 per ounce, analysts remain bullish on its future. Macquarie Group predicts prices could reach $3,500 per ounce in the second quarter, while BNP Paribas SA expects gold to stay well above $3,000 in the near term.
A market correction occurs when a stock index, individual stock, or other financial asset drops by at least 10% from its recent high. Corrections are a natural part of market cycles, often triggered by investor concerns over economic growth, interest rates, or political events.
While corrections can be unsettling, they help prevent excessive speculation and bring stock valuations back to more sustainable levels. They differ from bear markets, which involve declines of 20% or more and often signal prolonged economic downturns.
