Gold prices surged to an unprecedented peak, breaching the $2,971 per ounce mark in afternoon trading, according to NDTV.
This new all-time high comes in response to escalating global trade tensions sparked by U.S. President Donald Trump’s recent threats to impose steep tariffs on European Union imports, including champagne, wine, and other alcoholic products.
The announcement has reignited fears of a broader trade war, driving investors to seek refuge in gold, widely regarded as a safe-haven asset during times of economic and geopolitical uncertainty.
The rally builds on a remarkable trend for gold in 2025, with the precious metal already achieving its eleventh record high this year, as reported by BullionVault.
Earlier this week, spot gold prices hovered near $2,915 per ounce, reflecting a cautious market response to Trump’s partial rollback of tariff threats against Canada, according to Current Gold News on X.
However, the latest escalation targeting the EU has pushed prices even higher, with gold futures topping $3,000 for the first time ever, per a Zero Hedge report cited on X by Fxhedgers.
This morning, spot gold hit $2,974, underscoring the intensity of investor demand.
Trump’s tariff rhetoric has been a persistent catalyst for gold’s ascent since the start of the year.
Reuters reported on February 20 that gold reached $2,954.69 per ounce, its tenth record high of 2025, amid fears of a global trade war triggered by earlier threats against lumber, automobiles, semiconductors, and pharmaceuticals.
The February surge followed a 12% gain for bullion year-to-date, fueled by safe-haven buying and central banks’ efforts to bolster reserves amid economic instability.
Analysts like Ross Norman, cited by Kitco News, have noted that the $3,000 level exerts a “magnetic effect” on the market, suggesting that gold’s momentum may carry it further despite technical indicators hinting at an overbought condition.
The broader economic context amplifies gold’s appeal.
Trump’s tariff policies, perceived as inflationary, have heightened concerns about stagflation—a scenario of rising prices coupled with sluggish growth—where gold historically performs well.
Phillip Streible of Blue Line Futures, quoted by Reuters on February 10, described gold’s rally since December as a “45-degree” climb, potentially foreshadowing prices as high as $3,250 or $3,500 if trade tensions persist.
Meanwhile, the U.S. Federal Reserve’s cautious stance on rate cuts, reinforced by January meeting minutes highlighting inflation worries, has further supported gold’s upward trajectory, as reported by Finance Magnates.
Market sentiment on X reflects the rapid pace of these developments.
Posts from Investing.com earlier this year documented gold’s climb past $2,900 on February 9 and a fresh high on February 19 as Trump expanded tariff scopes.
By March 3, a softer dollar and mounting tariff concerns drove a more than 1% price jump, signaling sustained investor anxiety.
The PitBoss16 noted on March 10 that gold futures settled at $2,898.50, down slightly due to speculation about tariffs extending to precious metals, though the latest EU threats have reversed that dip.
Globally, the impact is palpable. BullionVault reported on February 9 that gold hit new records in British pounds (£2,342) and euros (€2,816), driven by a stronger U.S. dollar and rising bond yields following Trump’s aluminum and steel tariff announcements.
China’s retaliatory tariffs on $14 billion of U.S. goods, effective Monday, added to the tit-for-tat escalation, further bolstering gold’s safe-haven status.
While some analysts, like those at Hualian Futures cited by BullionVault, caution that gold’s core drivers—geopolitical uncertainty, central bank demand, U.S. inflation, and fiscal deficits—could weaken over time, the immediate outlook remains bullish.
Investors are closely watching Trump’s next moves and the Federal Reserve’s response to inflationary pressures.
For now, gold’s record-breaking run underscores its role as a barometer of global unease, with Trump’s tariff threats serving as the latest spark in an already volatile economic landscape.
