Gold has reached a new milestone, surpassing the $3,000 per ounce mark for the first time in history. The rapid increase in price underscores the ongoing flight of investors to safe-haven assets, driven by geopolitical tensions, economic uncertainty and concerns over central bank monetary policy.
The persistent uncertainties on financial markets, exacerbated by geopolitical conflicts and economic tensions between the US and China, have further fueled the demand for gold. The looming trade conflict between the world’s two largest economies and speculation over new tariffs on precious metals have contributed to the price surge.
Christopher Grunder, a financial expert and founder of a family office, notes, “Gold remains a preferred investment option in uncertain times. The combination of geopolitical instability, inflation and expectations of future interest rate cuts makes the metal particularly attractive.”
According to reports in the Financial Times, a significant relocation of physical gold holdings from London to New York is being observed. This movement is attributed to concerns that the Trump administration may impose additional import tariffs on gold, leading to a price difference between the two trading hubs that arbitrage traders are exploiting. In the past months, gold bars worth over $61 billion have flowed into the US, resulting in shortages in London.
The psychologically significant $3,000 per ounce mark may further fuel the gold rally. While investors seek safety in uncertain times, trade restrictions and geopolitical tensions could continue to drive the price upward. However, experts caution that an excessive euphoria could also pose risks if the economic situation stabilizes.