Gold Flies Past $3,000 as Investors Run for Safety Amid Global Turmoil

Gold prices surged past $3,000 an ounce for the first time on Friday, hitting a record $3,005 before settling just below the milestone. The spike reflects rising demand for safe-haven assets as global uncertainty intensifies, driven by escalating trade tensions and geopolitical instability.

The latest catalyst was a fresh round of tariffs from the Trump administration. On Wednesday, the US imposed 25% tariffs on all steel and aluminum imports, prompting swift retaliation from Canada and the European Union.

Trump then threatened to impose a 200% tariff on European alcoholic beverages unless the EU dropped its 50% tariff on US spirits. The uncertainty over trade policy has left businesses hesitant to hire and invest.

Analysts describe gold’s rise as a signal of deep investor anxiety about America’s economic direction. Gold prices have climbed roughly 60% since Russia’s 2022 invasion of Ukraine, as central banks—particularly the People’s Bank of China—have been stockpiling gold to avoid the risk of having foreign reserves frozen, a fate that befell Russia.

Russia’s rejection of a US-backed ceasefire proposal in Ukraine has further rattled markets. Russian President Vladimir Putin’s tough conditions for peace talks have prolonged the conflict, adding to geopolitical instability.

What Does This Mean for Me?

A weaker US dollar has also supported gold’s rise. Since gold is priced in dollars, a falling greenback makes it more attractive to buyers outside the US. The broader market’s nervousness is evident, with investors increasingly turning to gold as a protective asset amid trade wars, military conflict, and policy uncertainty.