Quick Summary: Gold surged past $3,000, reaching a record high as trade tensions and inflation worries fuel demand.
The U.S. dollar’s decline makes gold more attractive, pushing prices higher.
Analysts forecast further gains, with projections hitting $3,200 in six months.
Geopolitical risks, including Middle East tensions, continue to drive safe-haven buying.
Gold Surpasses $3,000 as Global Uncertainties Fuel Demand
Gold surged to a record high on Tuesday, surpassing the $3,000 milestone as escalating global uncertainties and trade tensions drove demand for the safe-haven asset.
Gold Prices Reach New Highs
Spot gold climbed 0.6% to $3,017.84 per ounce as of 07:15 GMT, after briefly hitting an all-time high of $3,018.66. This marks the second time the metal has crossed the $3,000 threshold since March 14. Meanwhile, U.S. gold futures rose 0.7% to $3,027.00.
Factors Driving Gold’s Rally
Gold, widely regarded as a hedge against geopolitical and economic instability, has gained over 14% since the start of the year. The metal has set 14 record highs since U.S. President Donald Trump took office, with his ongoing tariff policies heightening investor concerns. Recent trade measures include a 25% duty on steel and aluminum implemented in February, with additional tariffs set to take effect on April 2.
Analysts at the World Gold Council (WGC) noted that while gold may see some consolidation due to its rapid rise, several factors continue to support investment demand. These include:
- Geopolitical and economic uncertainty
- Rising inflation
- Lower interest rates
- A weaker U.S. dollar
U.S. Dollar Weakness Boosts Gold Appeal
The U.S. dollar hovered near a four-month low, making gold more attractive to foreign buyers. This trend is expected to sustain gold’s upward momentum in the short term.
Market Forecasts and Investor Outlook
In response to rising trade and geopolitical tensions, ANZ revised its gold price forecast upward. The bank now projects gold to reach $3,100 per ounce within the next three months and $3,200 within six months. The WGC suggested that if gold remains above $3,000 for several weeks, it could trigger further buying activity.
Investors are also closely monitoring the Federal Reserve’s economic projections this week, which could provide insight into the impact of Trump’s trade policies.
Middle East Tensions Add to Market Uncertainty
Geopolitical risks are also influencing the gold market. “Israeli air strikes may reignite tensions in the Middle East, adding to the multiple factors pushing gold higher,” said Kyle Rodda, a financial market analyst at Capital.com.
Performance of Other Precious Metals
Other precious metals also saw gains:
- Silver edged up 0.2% to $33.90 per ounce.
- Platinum rose 0.4% to $1,004.16 per ounce.
- Palladium climbed 0.7% to $971.75 per ounce.
With strong investor demand and ongoing economic uncertainty, gold’s rally shows no signs of slowing
