Gold prices have surged above $3,000 an ounce due to President Donald Trump’s tariffs against major trade partners, causing concern among investors about elevated inflation and a possible recession. The latest move has seen gold futures close at a record high of $3,001.1 an ounce, with gains of 13.6% so far this year.
According to Bank of America, 52% of global fund managers believe gold is the best hedge against a full-blown trade war. This sentiment is backed by experts, who point to macroeconomic and geopolitical uncertainty as key drivers behind gold’s recent surge. Senior commodities strategist at BNP Paribas markets, David Wilson, notes that Trump’s tariff threats have added a new layer of uncertainty, boosting gold prices.
Gold’s rally above $3,000 is the metal’s third most significant bull market in modern history. The surge is largely driven by macroeconomic funds, which are expected to continue buying gold despite having limited budget capacity. Central banks have also been buying gold, adding 1,045 metric tons to global reserves last year, as they seek alternative investments to the US dollar and Treasuries.
The World Gold Council reports that central banks purchased 18 metric tons of gold in January, with China’s People’s Bank reporting its third consecutive month of net buying. The increased demand from central banks has contributed to gold’s record-breaking price.
Source: https://www.cnbc.com/2025/03/14/gold-surges-above-3000-as-investors-seek-a-haven-from-trump-tariffs.html