According to Reuters, gold prices surpassed $3,000/ounce for the first time on Friday, continuing to increase strongly thanks to trade tensions and expectations that the US Federal Reserve (FED) will cut interest rates, making gold even more attractive as a safe-haven asset.
Spot gold increased by 0.4%, reaching $3,000.39/ounce at 10:31 GMT. Gold prices have hit 13 record highs in 2025 and increased by more than 14%. US gold futures increased by 0.7%, to 3,012.9 USD.
In the context of rising geopolitical tensions, rising trade tariffs and uncertainty in the financial market, investors are looking for stability and they are finding that in gold.
When gold breaks above $3,000, short-term profit-taking could temporarily put pressure on gold prices," said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany.
US government taxes have played an important role in increasing demand for gold. The global trade war has rocked financial markets and raised concerns about economic recession, especially as trade tensions escalate, such as the threat to impose a 200% tax on alcohol imports from Europe on Thursday.
SPDR Gold Trust - the world's largest gold ETF said that the fund's gold holdings reached 905.81 tons, the highest level since August 2023 at the end of February.
Meanwhile, data shows that the US consumer price index fell more strongly than analysts expected, which could create more space for the Fed to cut interest rates. The Fed's next policy meeting is on Wednesday, and is expected to keep the benchmark interest rate unchanged overnight.
The FOMC decision next week, along with Chairman Jerome Powells signal, will determine whether spot gold prices will remain above $3,000 an ounce, said Han Tan, chief market analyst at Exinity Group.
Traders expect policymakers to continue cutting borrowing costs in June.
We maintain an optimistic view on gold, with prices forecast to reach a record $3,050/ounce in 2025, ANZ analysts noted.
Spot silver prices increased by 0.5%, reaching 33.96 USD/ounce, while platinum prices decreased by 0.9%, while USD 985 and palladium prices increased by 0.4%, to USD 961.91.
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