Gold prices hit $3,000 per ounce for the first time
What's the story
Gold prices have hit a historic milestone, breaching the $3,000 per ounce mark for the first time ever.
The surge in value comes largely due to rising trade tensions and expected rate cuts by the US Federal Reserve (Fed).
Spot gold was priced at $3,000.87 per ounce as of 10:15 GMT on Friday, up 0.4% from previous valuations. US gold futures rose 0.7% to $3,013.60/oz.
Record highs
Gold's ascent to new heights
The precious metal has hit 13 record highs this year alone and is on track for a second week of gains.
Han Tan, the Chief Market Analyst at Exinity Group, said that "the precious metal still has an abundance of reasons to pursue higher prices."
He mentioned geopolitical and economic concerns as well as possible Fed rate cuts as reasons pushing gold's value up.
Tariff impact
Trade tensions and gold demand
US President Donald Trump's tariffs have played a major role in driving gold demand. The ongoing global trade war has rattled financial markets and heightened recession fears.
Just recently, Trump threatened to slap a 200% tariff on alcohol imports from Europe, escalating these trade tensions further.
Amid these developments, SPDR Gold Trust—the world's largest gold-backed ETF—reported its holdings at 905.81 metric tons after hitting their highest level since August 2023 in late February.
Future predictions
Fed's potential rate cuts and gold prices
Data released on Wednesday showed US consumer prices cooled more than analysts had expected, possibly paving the way for more rate cuts by the Fed.
The Fed's next meeting is on Wednesday, where it is widely expected to keep its benchmark overnight interest rate unchanged.
Tan suggested "next week's FOMC decision, along with Chair (Jerome) Powell's signals, are set to dictate whether spot gold remains above or below $3k."
Future outlook
Analysts predict further gold price increases
Analysts at ANZ have maintained their bullish outlook on gold prices, forecasting a high of $3,050 per ounce in 2025.
Spot silver rose slightly by 0.4% to $33.94 per ounce.
Platinum fell slightly by 0.5% to $989.04 while palladium rose by 0.3% to $960.71 per ounce.