Gold extends historic rally as investors seek cover from tariff risks
Gold scaled an all-time peak on Tuesday, extending its historic run above the $3,000 mark as global uncertainties exacerbated by rising trade tensions kept investors hooked on the popular safe-haven asset.
Spot gold rose 0.6% to $3,017.84 an ounce as of 0715 GMT after hitting a record high of $3,018.66. Prices climbed above $3,000 for the first time March 14.
U.S. gold futures gained 0.7% to $3,027.00.
Historically considered a hedge against geopolitical instability, gold has risen more than 14% year-to-date. Since US President Donald Trump took office in January, the metal has hit a record high 14 times as economic concerns due to his tariff war boosted demand.
The tariffs include a flat 25% levy on steel and aluminium which came into effect in February and reciprocal and sectoral tariffs to be imposed on April 2.
"While gold may face some consolidation due to the speed of its latest move, the combination of geopolitical and geo-economic uncertainty, rising inflation, lower rates and a weaker U.S. dollar continue to provide powerful tailwind to investment demand," analysts at the World Gold Council (WGC) said.
The dollar wallowed near a four-month trough, making gold cheaper for overseas buyers. [US/][USD/]
ANZ raised their 3-month gold price forecast to $3,100 and 6-month forecast to $3,200, citing escalating geopolitical and trade tensions, easing monetary policy and central bank buying.
The WGC said if gold remains above $3,000 over the next couple of weeks, it could trigger additional buying.
Economic projections from the Federal Reserve this week will provide the most tangible evidence yet of the impact of Trump's policies.
"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's financial market analyst Kyle Rodda said.
Silver firmed 0.2% to $33.90 an ounce, platinum added 0.4% to $1,004.16 and palladium rose 0.7% to $971.75.
