Gold has surpassed the significant milestone of $3,000 an ounce on Friday, marking a new high in its historic rally fueled by trade tensions and expectations of U.S. interest rate cuts. At 1015 GMT, spot gold was up 0.4% at $3,000.87 per ounce.
U.S. gold futures also saw a 0.7% increase, reaching $3,013.60.
This year, gold has broken 13 all-time highs and is on track for a second consecutive week of gains. Han Tan, chief market analyst at Exinity Group, commented, “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.”
U.S. President Donald Trump’s tariffs have played a key role in boosting the demand for gold. The ongoing global trade war has led to market turmoil and raised fears of a recession, with Trump recently threatening a 200% tariff on alcohol imports from Europe.
The world’s largest gold-backed ETF, SPDR Gold Trust, reported holdings at 905.81 metric tons, marking its highest level since August 2023. Additionally, recent data showed U.S. consumer prices cooling more than expected, potentially paving the way for Federal Reserve rate cuts. The Fed’s upcoming meeting, scheduled for Wednesday, is expected to maintain the current benchmark interest rate.
Traders anticipate that policymakers will resume cutting borrowing costs starting in June. ANZ analysts expressed confidence in gold’s prospects, projecting prices to reach a record high of $3,050 per ounce by 2025.
In the precious metals market, spot silver rose by 0.4% to $33.94 per ounce, while platinum fell by 0.5% to $989.04 and palladium increased by 0.3% to $960.71.
Overall, the outlook for gold remains positive, driven by trade tensions and expectations of further rate cuts by the Federal Reserve. The next FOMC decision, along with signals from Chair Jerome Powell, will likely determine whether gold maintains its position above $3,000.
The article was published on March 14, 2025.
