Gold crosses $3,000 per ounce for the first time ever

Gold bullion has hit 13 all-time highs so far this year.

Gold crossed the remarkable milestone of $3,000 per ounce for the first time ever on Friday, solidifying its position as a safe haven asset in the middle of market uncertainties.

A global trade war has caused market uncertainties, which has further solidified gold's status as a safe haven asset. (Representative image/Pixabay)

Bullion gold has hit 13 new all-time highs so far this year and is on its way for a second consecutive week of gains.

Spot gold has risen 0.4% to $3,000.87 per ounch while US gold futures were up 0.7% to $3,013.60.

“The precious metal still has an abundance of reasons to pursue higher prices, including geopolitical and economic concerns, along with the prospects of Fed rate cuts,” Han Tan, Exinity Group's chief market analyst, told Reuters.

A major reason for the record rise ingold prices has been the tariff policies of US President Donald Trump, who has adopted a tit-for-tat model to deal with global trade. Since announcing the first set of reciprocal tariffs on Canada, Mexico and China, Trump has continued to announce tariffs on multiple countries.

These affected countries have also responded with tariffs of their own on American goods, which has only fueled global trade tensions and made markets extremely volatile. This is why more and more people are rushing with their savings to gold, which is contributing to a rise in its price.

SPDR Gold Trust, the world's largest gold-backed ETF, said its holdings were at 905.81 metric tons after reaching its highest level since August 2023 in late February.

Additionally, data has showed that consumer prices in the US are falling more than expected, which might allow the US Federal Reserve to cut the benchmark overnight interest rates. The Federal Reserve is, however, expected to keep the rate unchanged.

“Next week’s FOMC decision, along with Chair (Jerome) Powell’s signals, are set to dictate whether spot gold remains above or below $3,000,” said Tan.

Spot silver added 0.4% to $33.94 an ounce, platinum lost 0.5% to $989.04 and palladium gained 0.3% to $960.71.