Gold prices surged past the $3,000-per-ounce milestone for the second time in a week on Tuesday, reaching an all-time high of $3,016.92 per ounce as investors turned to the precious metal as a safe haven amid ongoing economic uncertainties and trade tensions.
Spot gold rose 0.2% to $3,006.88 an ounce as of 0525 GMT, following its record high earlier in the session. US gold futures also gained 0.4%, reaching $3,017.20 per ounce. Gold initially crossed the $3,000 threshold last Friday, reflecting growing demand fueled by global instability and concerns over US trade policies.
Analysts point to a weaker US dollar as a key factor driving gold prices higher. The US dollar index hovered near a four-month low, making gold more attractive to foreign investors. Additionally, continued uncertainty surrounding US President Donald Trump’s proposed tariffs has contributed to gold’s appeal as a hedge against economic risk.
“Gold is moving higher on account of a weaker dollar and continued tariff uncertainties,” said Edward Meir, an analyst at Marex. “With gold at record highs, there is a lot of technical and chart-based buying that kicks in since there is no resistance apparent on the charts.”
Gold has climbed more than 14% year-to-date, driven by geopolitical concerns and market instability. Since Trump took office in January, the metal has set record highs 14 times, reflecting investor caution amid shifting trade policies. Trump’s latest tariff proposals include a flat 25% levy on steel and aluminum, which took effect in February, along with additional sector-specific tariffs expected to be implemented on April 2.
Amid escalating economic and geopolitical tensions, ANZ has revised its gold price forecasts upwards. The bank now expects gold to reach $3,100 per ounce in the next three months and $3,200 per ounce within six months. Analysts cite increased central bank purchases, easing monetary policy, and ongoing trade disputes as key reasons for their bullish outlook.
Market observers are also monitoring global geopolitical developments that could further impact gold prices. The Federal Reserve’s economic projections, expected later this week, will provide further insight into the impact of current US policies.
Additionally, renewed tensions in the Middle East have added another layer of uncertainty.
“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,” said Kyle Rodda, a financial market analyst at Capital.com.
Silver, platinum, and palladium also saw slight increases amid the bullish sentiment in the precious metals market. Spot silver edged up 0.1% to $33.85 an ounce, platinum gained 0.2% to $1,002.50, and palladium rose 0.4% to $968.96.
