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Gold has surged past the significant psychological milestone of $3,000 per ounce for the first time on Friday, continuing its historic rally fueled by trade tensions and U.S. interest rate cut expectations, enhancing its appeal as a safe haven asset.
As of 10:31 GMT, spot gold increased by 0.4%, reaching $3,000.39 per ounce. This year alone, gold prices have hit 13 all-time highs, appreciating by over 14%.
The Kobeissi Letter, a leading industry commentary on global capital markets, announced on Friday via Twitter, “Gold prices have officially crossed above $3,000/oz for the first time in history.”
This milestone was achieved just two days after highlighting that gold has outperformed most asset classes over the past 12 months.
“While the S&P 500 has risen +11% since March 2024, gold is up nearly +44%. And, while the S&P 500 is down -5% YTD, gold is officially up over +10% YTD,” the commentary noted.
12 new records have already been set in 2025
Since President Trump’s inauguration on January 20, gold has risen approximately 10%, climbing from $2,620 at the start of the year. It has already set 12 new records in 2025, building on a 27% gain from 2024.
“Amid escalating geopolitical tensions, rising trade tariffs, and growing financial market uncertainty, investors are increasingly seeking stability – and they are finding it in gold,” said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany. “As gold surpasses the $3,000 mark, short-term profit-taking could put temporary pressure on the price.”
President Trump’s tariffs have significantly increased gold demand. The global trade war, which has unsettled financial markets and heightened recession fears, is intensifying. On Thursday, Trump threatened to impose a 200% tariff on alcohol imports from Europe.
The SPDR Gold Trust, the world’s largest gold-backed ETF, reported holdings of 905.81 metric tons, reaching its highest level since August 2023 in late February.
Meanwhile, U.S. consumer prices cooled more than expected, potentially allowing for more Federal Reserve rate cuts. The Fed’s next policy meeting is scheduled for Wednesday, where it is widely expected to keep its benchmark overnight interest rate unchanged.
“Next week’s FOMC decision, along with Chair Jerome Powell’s signals, will determine whether spot gold remains above or below $3,000,” said Han Tan, Exinity Group’s chief market analyst.
What you should know
- Traders anticipate that policymakers will resume cutting borrowing costs in June.
- “We maintain our bullish stance on gold, with prices expected to reach a record high of $3,050 per ounce in 2025,” noted analysts at ANZ.
- Any decline below $3,000 could see gold testing $2,900 or even $2,880. However, given the strong trend, any dips are expected to attract fresh buying interest.
Historically, gold prices have been viewed as a safe haven, rising with a weaker dollar and lower interest rates. However, in recent months, gold has risen alongside high interest rates, a strong U.S. dollar, and a robust stock market, defying historical trends.
Physical gold demand in the U.S. has surged, with gold imports reaching a record $30.4 billion in January, marking a second consecutive month of significant increases. This figure is double the amount seen during the 2020 pandemic.
