Metal breaches crucial $3,000 mark for second time in a week as traders seek safety
18 March 2025 - 08:02
byAshitha Shivaprasad and Anjana Anil
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Bengaluru — Gold prices scaled a record peak above the crucial $3,000-mark on Tuesday for the second time within a week, as investors sought cover from economic concerns fuelled by US President Donald Trump’s tariff policies.
Spot gold was up 0.4% at $3,012.74/oz 4.20am GMT after hitting a record high of $3,014.83/oz earlier in the session.
Gold rose above the $3,000/oz milestone for the first time on Friday.
US gold futures rose 0.5% to $3,021.70.
“Gold is moving higher on account of a weaker dollar and continued tariff uncertainties.... With gold at record highs, there is a lot of technical and chart based buying that kicks in since there is no resistance apparent on the charts,” said Marex analyst Edward Meir.
The dollar index wallowed near a five-month trough, making gold cheaper for overseas buyers.
Historically considered a hedge against geopolitical instability, gold has risen more than 14% so far this year. Since Trump took office in January, gold has hit a record high 14 times as trade tensions have boosted safe-haven demand.
Trump has floated plans for a series of US tariffs, from a flat 25% on steel and aluminium, which came into effect in February, and reciprocal and sectoral tariffs that he said will be imposed on April 2.
ANZ raised their up to three-month gold price forecast to $3,100/oz and six-month forecast to $3,200/oz, citing escalating geopolitical and trade tension, easing monetary policy and strong central bank buying.
New economic projections from Federal Reserve officials this week will provide the most tangible evidence yet of the likely impact of Trump administration policies.
Forecasters have marked down their expectations for US growth this year, raised concerns about a potential recession, and expect increased inflation.
Meanwhile, “Israeli air strikes may also see tensions flare in the Middle East again and that could add to the litany of drivers pushing gold higher”, Capital.com financial market analyst Kyle Rodda said.
Spot silver gained 0.2% to $33.90/oz, platinum added 0.4% to $1,004.00 and palladium rose 0.6% to $970.49.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Tariff turmoil helps gold reach record high
Metal breaches crucial $3,000 mark for second time in a week as traders seek safety
Bengaluru — Gold prices scaled a record peak above the crucial $3,000-mark on Tuesday for the second time within a week, as investors sought cover from economic concerns fuelled by US President Donald Trump’s tariff policies.
Spot gold was up 0.4% at $3,012.74/oz 4.20am GMT after hitting a record high of $3,014.83/oz earlier in the session.
Gold rose above the $3,000/oz milestone for the first time on Friday.
US gold futures rose 0.5% to $3,021.70.
“Gold is moving higher on account of a weaker dollar and continued tariff uncertainties.... With gold at record highs, there is a lot of technical and chart based buying that kicks in since there is no resistance apparent on the charts,” said Marex analyst Edward Meir.
The dollar index wallowed near a five-month trough, making gold cheaper for overseas buyers.
Historically considered a hedge against geopolitical instability, gold has risen more than 14% so far this year. Since Trump took office in January, gold has hit a record high 14 times as trade tensions have boosted safe-haven demand.
Trump has floated plans for a series of US tariffs, from a flat 25% on steel and aluminium, which came into effect in February, and reciprocal and sectoral tariffs that he said will be imposed on April 2.
ANZ raised their up to three-month gold price forecast to $3,100/oz and six-month forecast to $3,200/oz, citing escalating geopolitical and trade tension, easing monetary policy and strong central bank buying.
New economic projections from Federal Reserve officials this week will provide the most tangible evidence yet of the likely impact of Trump administration policies.
Forecasters have marked down their expectations for US growth this year, raised concerns about a potential recession, and expect increased inflation.
Meanwhile, “Israeli air strikes may also see tensions flare in the Middle East again and that could add to the litany of drivers pushing gold higher”, Capital.com financial market analyst Kyle Rodda said.
Spot silver gained 0.2% to $33.90/oz, platinum added 0.4% to $1,004.00 and palladium rose 0.6% to $970.49.
Reuters
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