Gold prices surged to a fresh record high on Tuesday, climbing over 1% to remain firmly above the $3,000-per-ounce level, as heightened geopolitical tensions in the Middle East and uncertainty over U.S. President Donald Trump’s tariff plans drove investors toward the safe-haven asset.
Spot gold peaked at $3,038.26 per ounce and stood at $3,031.22 by 12:00 p.m. ET (1600 GMT). The metal had first crossed the $3,000 threshold on March 14, marking a historic milestone for bullion, which has already gained more than 15% year-to-date and notched record highs on 14 separate occasions.
“The escalation in the Middle East tensions – as Israel launched military strikes on Hamas targets in Gaza, which threatens to undermine the ceasefire – has injected a new bid into gold,” said Nicky Shiels, head of metals strategy at MKS PAMP SA.
Gold’s rally has also been bolstered by growing concerns over trade policy in the United States.
Trump’s proposed tariff measures include a flat 25% duty on steel and aluminium, already in effect since February, and further reciprocal and sector-specific tariffs set to be imposed on April 2.
As investors seek refuge from geopolitical and economic volatility, attention is now shifting to Trump’s upcoming meeting with Russian President Vladimir Putin, where he is expected to press for a Ukraine ceasefire.
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According to Reuters, markets are also closely watching the Federal Reserve’s monetary policy decision on Wednesday, with traders widely expecting rates to remain unchanged. According to the CME Group’s FedWatch Tool, there is nearly a 66% chance of a rate cut in June.
“If gold holds above $3,040, the next resistance level is projected at $3,080 as an extreme scenario,” said Razan Hilal, market analyst at City Index.
Elsewhere in the precious metals market, silver rose 0.5% to $33.99 an ounce, hitting its highest level since late October. “We may see stronger gains in silver over the next couple of weeks as it is playing catch-up,” said Jim Wyckoff, senior analyst at Kitco Metals.
Platinum slipped 0.1% to $998.85, while palladium edged down 0.3% to $962.00.
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