Gold prices surged to a new high on Friday, reaching above $3,000 per ounce as investors seek safe-haven assets amid growing trade tensions. The precious metal is now up more than 12% year-to-date and has multiple record highs in recent months.
Uncertainties about the economy, tariffs, and inflation have driven up demand for gold, with central banks also buying into the market to support prices. Wall Street strategists have raised price targets to keep pace with gold’s rise, predicting a peak of $3,500 per ounce in the third quarter.
The US has threatened 200% tariffs on wine and spirit imports from Europe, while the EU has announced retaliatory measures. This has led institutional investors to buy physical gold bars, taking advantage of a price disparity between London and New York.
Analysts say gold is playing a key role as a safe-haven asset amidst rising inflation expectations, lower rates, and continued uncertainty. As one market strategist noted, “Gold at $3,000 might just be a stepping stone if trade wars deepen.” The World Gold Council’s Joe Cavatoni said: “With rising inflation expectations, lower rates, and continued uncertainty, we continue to see support for gold looking ahead.”
Source: https://finance.yahoo.com/news/gold-reaches-3000-as-trade-war-escalates-economic-uncertainty-rises-140658775.html