The price of gold has surged to an unprecedented $3,000 per ounce mark for the first time, capturing global attention. This milestone was reached on Friday when gold prices touched a record $3,004.86 per ounce. The precious metal has experienced a 14% increase since the start of 2025, driven by economic uncertainty stemming from a global trade war. This ongoing conflict has shaken financial markets and raised concerns about its repercussions on global economies and consumers.
The trade war's latest developments have seen the US President threatening to impose a 200% tariff on alcohol imports from the European Union (EU). In response, the EU is contemplating a 50% tax on US-produced whiskey. This move comes as retaliation to blanket tariffs imposed by the US on all steel and aluminum imports. Additionally, the US has increased levies on Chinese imports to a minimum of 20%. These escalating measures have contributed significantly to the current economic turmoil.
Historically, investors have turned to gold as a safe haven during economic crises. The trend was evident at the onset of the global financial crisis in 2007 when gold prices saw a notable rise. Economic peaks and troughs have consistently influenced gold prices, with the current situation being no exception.
Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany, emphasized the ongoing appeal of gold amidst these tensions.
"Amid escalating geopolitical tensions, rising trade tariffs, and growing financial market uncertainty, investors are increasingly seeking stability – and they are finding it in gold." – Alexander Zumpfe, Heraeus Metals Germany.
Suki Cooper, a precious metals analyst at Standard Chartered, echoed this sentiment, highlighting the sustained interest in gold as a reliable investment asset.
"In a backdrop of geopolitical uncertainty and ongoing tariff changes, appetite for gold remains strong," – Suki Cooper, Standard Chartered.
Gold's upward momentum appears far from over, with experts suggesting that prices may continue to climb. The demand for gold has surged as economic uncertainty persists, causing investors to seek refuge in the stability it offers.