LONDON: Gold prices hit $3000 per ounce for the first time in history on Friday.
The surge was driven by investors seeking safe-haven assets.
Market fears over President Donald Trump’s tariffs and global tensions fueled the demand.
Gold briefly reached a record $3,005 before dipping slightly to $2,994.
This marks a significant moment for the precious metal amid economic uncertainty.
Tariff Impact
On Wednesday, the U.S. imposed 25% tariffs on imported steel and aluminum.
These measures, part of Trump’s economic policies, sparked global trade tensions.
Canada and the European Union quickly retaliated with countermeasures against U.S. goods.
Markets reacted sharply, driving investors toward gold as a hedge against instability.
The tariffs are expected to further strain international trade relations.
Escalating Trade War
Trump escalated the situation by announcing a 200% tariff on European alcoholic beverages.
This move came after the EU imposed a 50% tariff on U.S. spirits.
The back-and-forth trade dispute has rattled financial markets.
Investors are now seeking stability in gold as uncertainty rises.
Analysts predict that ongoing trade conflicts could push prices even higher.
Investor Reaction
Traders are closely watching economic policies that impact global markets.
Gold has traditionally been a safe-haven investment during financial turbulence.
With trade disputes intensifying, demand for gold is expected to remain strong.
Many investors see gold as a hedge against inflation and geopolitical risks.
Market analysts suggest that prices could climb further if uncertainty persists.
Future Outlook
Experts warn that prolonged trade wars could shake global financial stability.
If tensions continue, investors may keep turning to gold for security.
Economic indicators will be crucial in determining future price movements.
Many will watch whether further tariffs or policy shifts impact market trends.
For now, gold remains a key refuge in volatile economic times.
