On Friday, 14 March, gold reached a historic milestone, surpassing US$3,000 for the first time. This record was mostly driven by investors seeking refuge from the economic uncertainty brought on more broadly by the unpredictability of the new US administration and, more specifically at this moment, President Trump’s tariffs.
Spot gold peaked at US$3,004/oz in morning trading but came down later that morning to US$2,983.
This surge underscores gold’s enduring role as a safe-haven asset in volatile times, with historic precedent set during the 2008 financial crisis, when gold hit US$1,000 and then later during the COVID-19 pandemic, when the US$2,000 point marked another historic record.
The ongoing geopolitical turmoil and economic stress, exacerbated by tariff uncertainties and expectations of monetary policy easing from the Federal Reserve, have further propelled gold prices. The fear of missing out (FOMO) has also driven investor interest, as many previously hesitant investors rushed to join the rally after missing earlier price increases.
Despite this growth, when adjusted for inflation, gold remains below its 1980 peak, which would equate to about $3,800 today. Analysts suggest that similar economic and geopolitical factors that drove prices in the past could continue to push gold higher. Additionally, central banks have increased their gold purchases significantly since 2022, driven by a desire to reduce dependence on the U.S. dollar.
