Gold prices surged past $3,000 per ounce in a historic milestone during today’s trading session.
“Gold prices recorded a historic milestone during today’s trading session by briefly touching $3,000 per ounce, consolidating its role as a safe-haven asset amid a global scenario marked by intense trade tensions and expectations of relative changes in US monetary policy,” said Quasar Elizundia, expert research strategist at Pepperstone.
Despite the psychological significance of the level, gold was unable to sustain trading above $3,000, as a moderate rebound in global stock markets toward the end of the week tempered demand for the metal.
“This relief in equities comes after days marked by uncertainty over trade escalations—particularly among the US, the EU, and China—fueling fears of a possible economic recession,” Elizundia added.
The easing of inflation data in the US, including the Consumer Price Index (CPI) and Producer Price Index (PPI), has provided additional support for gold prices. “Especially noteworthy was the CPI’s return to a disinflationary trend, which could lead the Federal Reserve to relatively soften its monetary stance,” said Elizundia.
Market expectations now point to up to three interest rate cuts in 2025, in contrast to the Fed’s December forecast of just one.
Gold’s near-term trajectory remains tied to the Federal Reserve’s upcoming policy decisions.
“Although resistance at $3,000 is evident, from an operational perspective there remains the possibility of an additional advance toward $3,040 per ounce, particularly if the Fed adopts a more accommodative tone in its upcoming meeting on Wednesday,” Elizundia noted.
Joseph Dahrieh, managing principal at Tickmill, highlighted mounting trade tensions and recession fears as key drivers behind gold’s recent gains.
“After several back-and-forths on tariffs this week, market uncertainty surged following President Trump’s announcement of a 200% tariff on alcoholic imports from the EU, fueling risk aversion and boosting demand for safe-haven assets like gold,” Dahrieh said.
Economic concerns could further bolster gold’s appeal.
“A cooling labor market and slowing inflation could push the Federal Reserve toward a more dovish stance at its next meeting, potentially driving gold prices to new records. However, a cautious tone, driven by inflation concerns over ongoing trade tensions, could limit the precious metal rally,” Dahrieh explained.
Geopolitical developments also play a pivotal role in shaping market sentiment.
“A ceasefire between Ukraine and Russia could improve investor sentiment, potentially weakening gold’s bullish trend,” said Dahrieh.
“However, the agreement remains to be seen, with Russian President Vladimir Putin leaving room for renewed uncertainty that may bolster gold prices once again.”
Here's a look at some of the news in the gold sector this week: