Gold prices scaled $3,000 per ounce for the first time ever on Friday, as investors and central banks continue to hoover up the popular safe haven asset as a bulwark against persistent geopolitical and economic uncertainty.
The milestone caps an astonishing rally for the yellow metal in recent years.
The price of gold has jumped more than 50 per cent since the start of 2023 and 30 per cent in the past year.
Bullion climbed 0.4 per cent to reach $3,001.20 at 10am GMT, breaking the psychological barrier of $3,000 for the first time in its centuries-long history as a store of value in choppy, unpredictable times.
Analysts have put the asset’s latest bull run down to the uncertainty bred by Donald Trump’s chaotic tariff policies.
The volatility has added to the longer-term demand there has been from central banks and investors as part of a wider de-dollarisation trend since Russia’s invasion of Ukraine.
John Reade, senior market strategist at the World Gold Council, branded the the metal surpassing the $3,000 mark a “significant milestone”, which “reinforces the asset’s safe haven role in times of uncertainty”.
Gold prices benefit from risk-off sentiment
“Gold has proven to perform well even in risk-off environments. Over the past five years, two key forces have driven the metal’s price higher – strong central bank demand and growing interest from emerging market investors,” Reade added.
“Gold is an asset that is able to preserve value under the biggest variety of macroeconomic dislocations that we have seen,” said Thomas Kertsos, co-portfolio manager at First Eagle Investment Management LLC.
“We’ve seen that over centuries gold has been able to — despite the volatility — always mean-revert and always maintain its purchasing power, all while providing significant liquidity.”
The milestone has sparked speculation that gold might continue its run and reach $3,500.
In a note last, Bank of America analysts led by Michael Widmer said: “For it to hit $3,500/oz, investment demand would need to rise 10 per cent. That’s a lot, but not impossible.”