Gold prices have broken through the $3,000 an ounce barrier for the first time, driven by investors seeking a safe-haven asset amid economic uncertainty. The spot gold price hit an all-time high of $3,004.86 on Friday, before dipping back below $3,000 as traders took profits.
Historically, gold is seen as a safe store of value during times of geopolitical turmoil. With concerns over the impact of US President Donald Trump’s tariffs and retaliation by trading partners contributing to recent stock market sell-offs, investors are turning to gold as a hedge against volatility.
Central banks have also been fueling demand for gold, with China boosting its reserves for the fourth straight month in February. Additionally, expectations that the Federal Reserve will return to easing monetary policy in the next few months have helped lift gold prices.
Analysts say that investment demand for gold is likely to remain robust due to heightened geopolitical and geo-economic risk, higher inflation expectations, potentially lower interest rates, and market uncertainty. As such, investors are expected to continue seeking safe-haven assets like gold amidst economic uncertainty.
Source: https://www.foxbusiness.com/markets/gold-price-rises-above-3000-ounce-first-time-amid-economic-uncertainty