Gold prices reached a historic milestone on Friday, surpassing $3,000 per ounce for the first time. This surge was driven by increased demand for safe-haven assets as investors became increasingly concerned about President Donald Trump’s tariffs and geopolitical tensions. The price briefly peaked at $3,005 before settling slightly below $3,000.
Jason Hollands, managing director at Evelyn Partners, described gold as “the panic asset of choice,” highlighting the extreme uncertainty in the global trade system due to the Trump administration’s erratic tariff policies and retaliatory measures from trading partners like Canada and the European Union. The imposition of a 25% tariff on steel and aluminum imports into the U.S. and subsequent threats of a 200% tariff on EU alcoholic beverages further exacerbated these tensions.
Former Treasury Secretary Larry Summers noted that gold’s performance reflects investors’ lack of confidence in U.S. economic management, amidst broader concerns about a potential global economic slowdown. The ongoing war in Ukraine and a weakening U.S. dollar have also contributed to gold’s appeal, with central banks like China’s People’s Bank increasing their gold reserves to diversify foreign holdings. Overall, these factors have positioned gold as a highly sought-after asset during times of economic uncertainty.