The price of gold has soared beyond $3,000 an ounce for the first time in history, as escalating trade tensions and growing economic uncertainty drive investors toward the precious metal.
Gold’s historic rally has been fueled by President Trump’s aggressive tariff policies, which have sparked fears of a global economic slowdown. The S&P 500 slipped into correction territory last night, triggering a rush toward safe-haven assets. As a result, gold prices rose 0.4% in early Friday trading, reaching a new peak of $3,000.87 per ounce. The metal has now surged 17% this year, breaking all-time records 13 times.
Analysts at RBC Capital Markets attributed the spike to “general uncertainty and chaos,” emphasizing that concerns over tariffs remain a major factor. “Gold continues to price uncertainty, specifically tariff uncertainty,” they noted. With recession probabilities climbing above 30%, many investors are hedging against potential economic downturns.
Tensions between the U.S. and its trading partners continue to mount. On Thursday, Trump announced a 200% tariff on European wine and champagne in retaliation for the EU’s 50% levy on American whiskey—imposed after Trump’s earlier steel and aluminum tariffs. These tit-for-tat measures have increased market instability, further driving gold’s appeal.
Han Tan, chief market analyst at Exinity Group, expects gold’s upward trend to continue. “The precious metal still has an abundance of reasons to pursue higher prices, including geopolitical and economic concerns, along with the prospects of Fed rate cuts,” he said.
Investors are now closely watching next week’s U.S. Federal Reserve meeting, where officials are expected to hold interest rates steady. Recent inflation data showed consumer prices cooling more than anticipated, which could pave the way for future rate cuts—another factor that typically supports gold prices.
Looking ahead, analysts at ANZ predict that gold could reach a record $3,050 per ounce before the end of the year, as uncertainty continues to grip global markets.
