Gold pierced through the psychological milestone of $3,000 an ounce on Friday for the first time, building on an historic rally as trade tensions and U.S. rate cut bets supercharge its appeal as a safe haven asset.
Spot gold was up 0.4% at $3,000.39 an ounce at 1031 GMT. Prices have scaled 13 all-time highs in 2025 so far, and have risen over 14%.
U.S. gold futures were up 0.7% to $3,012.90.
“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.”
U.S. President Donald Trump’s tariffs have played a significant role in raising gold’s demand. The global trade war that has roiled financial markets and raised recession fears is escalating, with Trump on Thursday threatening to slap a 200% tariff on alcohol imports from Europe.
SPDR Gold Trust, the world’s largest gold-backed ETF, said its holdings were at 905.81 metric tons after reaching its highest level since August 2023 in late February. Meanwhile, data showed U.S. consumer prices cooling more than analysts’ expected, potentially creating more room for Federal Reserve rate cuts. The Fed’s next policy meeting is on 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, are set to dictate whether spot gold remains above or below $3k,” said Han Tan, Exinity Group’s chief market analyst.
Traders expect 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,” analysts at ANZ noted.
Spot silver added 0.5% to $33.96 an ounce, platinum lost 0.9% to $985.00 and palladium gained 0.4% to $961.91.
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