Gold surpassed the significant $3,000 mark on Friday for the first time as investors flocked to the safe-haven asset amidst economic uncertainties amid President Donald Trump's tariff disputes. Spot gold peaked at a record high of $3,004.86 before slightly pulling back to $2,986.26 by 02:01 p.m. ET (1801 GMT) on profit-taking. U.S. gold futures ended 0.3% up at $3,001.10.
The climb above the $3,000 threshold was driven by investors seeking a secure asset amid market turmoil. According to Tai Wong, an independent metals trader, "beleaguered investors [were] seeking the ultimate safe-haven asset given Trump's tumult on stock markets."
Gold, traditionally seen as a safe haven during geopolitical unrest, has climbed nearly 14% this year, partly due to concerns over market impact and stock sell-offs. Ole Hansen, Saxo Bank's head of commodity strategy, noted that Western asset money managers were returning to gold due to a volatile stock market and economic concerns.
Central bank demand has also bolstered gold, with China increasing its bullion reserves for the fourth consecutive month in February. GoldCore CEO David Russell highlighted that central banks are acquiring gold to diversify away from a volatile U.S. dollar.
Market expectations of U.S. Federal Reserve monetary easing have further supported gold, as traders anticipate rate cuts to resume in June. Juan Carlos Artigas, global head of research at the World Gold Council, emphasized various factors driving robust investment demand for gold.
Goldman Sachs pointed out the upside potential in its scenarios, citing U.S. policy uncertainties that may boost investor interest. The bank also predicted continuous structural growth in central bank gold buying.
In comparison, silver remained stable at $33.80 per ounce, platinum increased by 0.1% to $995.20, and palladium rose 0.6% to $963.76.