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 store of value.
Spot gold was up 0.3% at $2,997.75 an ounce at 1115 GMT after hitting a record high of $3,004.86.
U.S. gold futures were up 0.6% to $3,009.10. Gold, traditionally viewed as a safe haven investment during times of inflation or economic volatility, has risen over 14% so far this year, driven in part by concerns over the impact of U.S. President Donald Trump's tariffs and the recent selloff in stock markets. 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.
“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. “For now, strong physical demand and safe-haven buying suggest that gold’s upward momentum is not yet exhausted.”
A combination of strong central bank purchases, sound investment demand as well as bets on monetary policy easing by the U.S. Federal Reserve, have also bolstered zero-yield bullion's performance this year.
The Fed is widely expected to keep its benchmark overnight interest rate unchanged at its meeting on Wednesday.
“Overall we maintain our $3,300 call for the year,“ said Ole Hansen, head of commodity strategy at Saxo Bank, adding a close above $3,000 on Friday can signal a continuation of the rally next week.
ANZ in a note forecast gold to hit $3,050 in 2025.
Silver, meanwhile added 0.2% to $33.87 an ounce, platinum lost 0.7% to $987.30 and palladium gained 0.6% to $963.78.
