Gold prices surged to a record high of over $3,030 an ounce, driven by rising tensions in the Middle East and growing concerns about the slowdown of the U.S. economy.
The precious metal rose as much as 1.3% after Israel launched airstrikes across Gaza, marking a significant escalation in the region and ending a nearly two-month ceasefire. Hamas reported that the airstrikes resulted in hundreds of casualties, heightening geopolitical risks and fueling demand for gold as a safe-haven asset.
Investors are also absorbing recent U.S. economic data, which indicated consumer caution in response to President Donald Trump’s tariff measures. This uncertainty, combined with fears over economic stagnation, has led to increased bets on potential interest rate cuts by the U.S. Federal Reserve. Market expectations now point to three rate cuts this year, with the Fed widely anticipated to hold rates steady following its March 19 meeting.
The broader economic outlook, both domestically and globally, has reinforced gold’s role as a store of value in times of uncertainty. The precious metal has climbed more than 15% this year, continuing its strong performance from 2024. Several major banks have raised their price targets for gold, further bolstering investor optimism.
Gold exchange-traded funds (ETFs) have seen sustained inflows, marking the fifth consecutive day of increases. The amount of gold held in ETFs has risen by 5% in 2024, reversing the declines seen in the previous four years, according to Bloomberg data.
Despite the ongoing rally, analysts caution that the $3,000 mark remains a strong resistance level in the short term. Vasu Menon, managing director of investment strategy at Oversea-Chinese Banking Corp, noted that while gold has briefly surpassed this threshold, it may not yet signal a definitive breakout. Menon forecasts gold could reach $3,100 within the next 12 months.
As of 12:16 p.m. New York time, spot gold was up 1.1%, trading at $3,033.44 per ounce. Meanwhile, silver rose, while platinum and palladium saw slight declines.
Related topics：
- What is the Value of 18K Gold?
- Why Does Gold Price Increase During War?
- What is the Best Price Being Paid for Gold Sovereigns?
