Gold hits record high near $3,000 as market uncertainty intensifies
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Gold surged to an all-time high of $2,993.80 per ounce on Friday, fueled by rising geopolitical risks, escalating trade tensions, and expectations of Federal Reserve monetary easing. While spot gold later dipped 0.1% to $2,984.71, it remains on track for its second consecutive weekly gain, up 2.5% so far.
The psychological $3,000 milestone is now within reach as investors seek refuge from market volatility. Analyst highlighted that the market's risk-off stance reflects concerns that trade tensions could escalate further before cooling, reinforcing gold’s appeal as a safe-haven asset.
The latest trigger for market instability came as the European Union retaliated against U.S. tariffs on steel and aluminum with a 50% tax on American whiskey exports. In response, President Trump threatened a 200% tariff on European wine and spirits, further heightening inflationary pressures and economic uncertainty. Gold has now hit 13 record highs in 2025, underscoring its status as a hedge against both inflation and political turmoil.
Investors are now looking ahead to the Federal Reserve’s policy meeting next Wednesday, where the central bank is widely expected to maintain interest rates within the 4.25%-4.50% range. Lower interest rates favor non-yielding assets like gold, and any dovish signals from the Fed could push prices even higher.
Meanwhile, Russia’s stance on a U.S.-proposed ceasefire in Ukraine remains uncertain, with President Vladimir Putin seeking revisions that make a quick resolution unlikely. Persistent geopolitical tensions continue to support strong demand for safe-haven assets, with silver rising to $33.86, platinum at $991.34, and palladium gaining to $964.45.
With reciprocal tariffs set to take effect in Q2 2025, and inflation concerns mounting, gold remains a compelling asset amid scarce alternatives. The key question now: Will the $3,000 mark act as resistance, or is there more upside ahead?
The psychological $3,000 milestone is now within reach as investors seek refuge from market volatility. Analyst highlighted that the market's risk-off stance reflects concerns that trade tensions could escalate further before cooling, reinforcing gold’s appeal as a safe-haven asset.
The latest trigger for market instability came as the European Union retaliated against U.S. tariffs on steel and aluminum with a 50% tax on American whiskey exports. In response, President Trump threatened a 200% tariff on European wine and spirits, further heightening inflationary pressures and economic uncertainty. Gold has now hit 13 record highs in 2025, underscoring its status as a hedge against both inflation and political turmoil.
Investors are now looking ahead to the Federal Reserve’s policy meeting next Wednesday, where the central bank is widely expected to maintain interest rates within the 4.25%-4.50% range. Lower interest rates favor non-yielding assets like gold, and any dovish signals from the Fed could push prices even higher.
Meanwhile, Russia’s stance on a U.S.-proposed ceasefire in Ukraine remains uncertain, with President Vladimir Putin seeking revisions that make a quick resolution unlikely. Persistent geopolitical tensions continue to support strong demand for safe-haven assets, with silver rising to $33.86, platinum at $991.34, and palladium gaining to $964.45.
With reciprocal tariffs set to take effect in Q2 2025, and inflation concerns mounting, gold remains a compelling asset amid scarce alternatives. The key question now: Will the $3,000 mark act as resistance, or is there more upside ahead?