LONDON: Gold broke through the key $3,000 barrier on Friday for the first time as investors piled on to a historic rally in the safe haven asset to seek cover from economic uncertainty sparked by US President Donald Trump’s tariff war.
Spot gold hit an all-time high of $3,004.86 earlier in the session, before easing 0.2% to $2,981.42 as of 11:34 a.m. ET (1534 GMT) on profit taking.
US gold futures were little changed at $2,991.90.
Gold’s surge past the $3000 milestone was driven by “beleaguered investors seeking the ultimate safe-haven asset given Trump’s tumult on stock markets,” said Tai Wong, an independent metals trader.
Traditionally viewed as a safe store of value during geopolitical turmoil, bullion has risen nearly 14% so far this year, driven in part by concerns over the impact of Trump’s tariffs and a resultant selloff in stock markets.
“Real asset money managers, particularly in the West, needed a strong stock market and economic slowdown scare to return to gold — and that’s happening now,” said Ole Hansen, head of commodity strategy at Saxo Bank.
Gold has also been supported by central bank demand, with key buyer China building its bullion reserves for a fourth straight month in February.
“Central banks continue record-level gold acquisitions, seeking to diversify away from an increasingly volatile US dollar,” said GoldCore CEO, David Russell.
Expectations of monetary easing by the US Federal Reserve have also helped zero-yield gold, with traders betting on cuts to resume in June.
American Dollar Exchange Rate