Gold prices soared past the historic $3,000 per ounce mark for the first time on Friday, extending a record-breaking rally driven by mounting trade tensions and growing expectations of U.S. interest rate cuts, reinforcing the metal’s status as a safe-haven asset.
Spot gold rose 0.4% to $3,000.39 per ounce as of 10:31 GMT. This milestone comes after gold has notched 13 all-time highs this year alone, gaining more than 14% in 2025.
The Kobeissi Letter, a prominent global markets commentary, confirmed the record-breaking surge on social media, posting: “Gold prices have officially crossed above $3,000/oz for the first time in history.”
Gold’s rise has far outpaced other major asset classes over the past year. While the S&P 500 has gained 11% since March 2024, gold has climbed nearly 44%. Even as the S&P 500 fell 5% year-to-date, gold has posted a 10% gain since the start of 2025.
The rally shows no signs of slowing. Since President Trump’s inauguration on January 20, gold prices have jumped roughly 10%, rising from $2,620 at the beginning of the year. So far in 2025, the precious metal has set 12 new record highs, building on a 27% surge in 2024.
“Amid escalating geopolitical tensions, rising trade tariffs, and growing financial market uncertainty, investors are increasingly seeking stability — and they are finding it in gold,” said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany. “While breaking the $3,000 barrier could trigger short-term profit-taking, the broader trend remains strong.”
Gold’s record run has been partly fueled by the ongoing global trade war. President Trump’s threat on Thursday to impose a 200% tariff on European alcohol imports has added to market volatility, pushing investors further toward gold.
At the same time, cooling U.S. inflation data has bolstered hopes for rate cuts by the Federal Reserve. Lower interest rates typically make non-yielding assets like gold more attractive.
The Fed’s next policy meeting is scheduled for Wednesday, where it is widely expected to hold rates steady. However, traders are betting that policymakers may resume cutting borrowing costs in June.
“Next week’s FOMC decision, along with Chair Jerome Powell’s signals, will determine whether spot gold remains above or below $3,000,” said Han Tan, chief market analyst at Exinity Group.
Investor appetite for gold remains robust. The SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, recently reported holdings of 905.81 metric tons — its highest level since August 2023.
Physical demand is surging as well. U.S. gold imports hit a record $30.4 billion in January, more than doubling pandemic-era levels.
Analysts at ANZ remain bullish on gold’s trajectory. “We maintain our bullish stance on gold, with prices expected to reach a record high of $3,050 per ounce in 2025,” they noted.
While a dip below $3,000 could see gold test support levels at $2,900 or $2,880, analysts expect any pullbacks to be met with strong buying interest given the current momentum.
Historically, gold prices have risen in response to a weaker dollar and lower interest rates. However, the current rally has defied conventional patterns, with gold climbing alongside high rates, a strong U.S. dollar, and a buoyant stock market.
