Gold has broken a significant milestone, surging above $3,000 per ounce in a remarkable rally that marks a historic moment for the precious metal. This surge comes as investors flock to gold as a safe-haven asset amidst economic uncertainties triggered by the tariff disputes initiated by US President Donald Trump.

The price of gold reached an unprecedented high of $3,004.86 earlier in the trading session before slightly retracting to $2,986.26, reflecting a 0.1% decrease due to profit-taking activities. Concurrently, US gold futures saw a 0.3% increase, settling at $3,001.10.

The surge in gold prices beyond the $3,000 threshold is a testament to the growing interest from investors seeking refuge in safe-haven assets amid the market turbulence caused by Trump’s policies. Tai Wong, an independent metals trader, attributed this surge to investors looking for a secure investment option amidst the uncertainties prevailing in the stock markets.

Historically, gold has been viewed as a reliable store of value during times of geopolitical unrest. Its value has climbed by nearly 14% since the beginning of the year, largely fueled by apprehensions surrounding the repercussions of Trump’s trade tariffs and the ensuing market downturn.

Ole Hansen, the head of commodity strategy at Saxo Bank, highlighted that the resurgence in gold’s popularity among Western real asset managers is a response to the current market conditions, emphasizing the appeal of gold during economic slowdowns.

Central to gold’s upward trajectory is the increased demand from central banks, with China notably bolstering its gold reserves for the fourth consecutive month in February. This move by central banks to diversify their reserves away from the volatile US dollar underscores the enduring allure of gold as a stable asset.

Furthermore, the anticipation of monetary policy adjustments by the US Federal Reserve has bolstered gold’s attractiveness, particularly as traders speculate on potential interest rate cuts in the coming months. The prevailing geopolitical tensions, coupled with inflation concerns, are driving investment demand for gold, as noted by Juan Carlos Artigas, the global head of research at the World Gold Council.

Goldman Sachs has expressed optimism regarding the future trajectory of gold prices, suggesting potential upside risks to their forecasts due to ongoing policy uncertainties in the US that could further drive investor interest in gold. The bank also highlighted the sustained increase in central bank gold purchases post the freezing of Russian central bank reserves in 2022.

In the broader market context, silver remained stable at $33.80 per ounce, platinum saw a marginal increase to $995.20, and palladium strengthened to $963.76, reflecting the overall positive sentiment towards precious metals in the current economic landscape.