Gold prices reached a record peak above $3,000 on Tuesday, marking the second time in a week. Investors sought cover from economic concerns. These concerns were fueled by U.S. President Donald Trump’s tariff policies.
Spot gold increased by 0.4% to $3,012.74 an ounce as of 0420 GMT. Earlier, it hit a record high of $3,014.83 per ounce.
Gold rose above the $3,000 per ounce milestone for the first time on Friday.
U.S. gold futures rose 0.5% to $3,021.70.
Edward Meir, a Marex analyst, said, “Gold is moving higher on account of a weaker dollar and continued tariff uncertainties … With Gold at record highs there is a lot of technical and chart based buying that kicks in since there is no resistance apparent on the charts.”
The U.S. dollar index wallowed near a five-month trough. This made gold cheaper for overseas buyers.
Gold, historically considered a hedge against geopolitical instability, has risen more than 14% this year. Since Trump took office in January, gold has hit a record high 14 times as trade tensions have boosted safe-haven demand.
Trump has floated plans for a series of U.S. tariffs. These include a flat 25% on steel and aluminum that took effect in February, and reciprocal and sectoral tariffs that he said will be imposed on April 2.
ANZ raised their up to 3-month gold price forecast to $3,100 per ounce and 6-month forecast to $3,200 per ounce. They cited escalating geopolitical and trade tensions, easing monetary policy, and strong central bank buying.
New economic projections from Federal Reserve officials will offer tangible evidence of the likely impact of Trump administration policies this week. Forecasters have marked down their expectations for U.S. growth this year, raised concerns about a potential recession, and expect increased inflation.
Kyle Rodda, Capital.com’s financial market analyst, said, “Israeli air strikes may also see tensions flare in the Middle East again and that could add to the litany of drivers pushing gold higher.”
Spot silver gained 0.2% to $33.9 an ounce. Platinum added 0.4% to $1,004.0, and palladium rose 0.6% to $970.49.
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