Gold rose sharply over last several weeks — coming within a whisker of $3,000-an-ounce — as President Donald Trump’s aggressive tariff agenda fanned concerns about the potential risk to growth, hurting demand for risk assets and aiding flows into bullion-backed funds.
Spot gold climbed toward $2,994 an ounce, eclipsing the previous peak set on Thursday. Bullion has risen 2.6% this week, putting it on track for the biggest gain since November. Futures in New York — which trade at a premium to cash prices — comfortably topped $3,000 an ounce.
The precious metal has performed robustly this quarter, extending a strong annual gain in 2024, as the US administration’s aggressive trade agenda damped appetite for risk assets including shares, with the key S&P 500 equity gauge entering a correction this week. Bullion’s advance has also been supported by central-bank buying, inflows into EFTs, and a wave of bank forecasts that greater gains may lie in store.
Among moves on trade, Trump threatened 200% tariff on European wine, champagne and other alcoholic beverages. He further added that he would not repeal levies on steel and aluminum that took effect this week, nor back off plans for sweeping reciprocal tariffs on global trading parters set to start as soon as April 2.
“The psychological $3,000 level is now coming into view,” said Yeap Jun Rong, a market strategist at IG Asia Pte. “As we approach the second quarter — where reciprocal tariffs could trigger another wave of market turbulence — gold remains a compelling safe-haven asset in an environment where alternatives are scarce.”
Bullion’s upswing benefited producers of the precious metal based in the Asia-Pacific. Among gainers, stock in Australia’s Evolution Mining Ltd. surged to an all-time high.
Banks are increasingly confident that further gains are in store, mapping out targets that would have seemed outlandish to many investors just a few quarters ago. Earlier this week, Macquarie Group forecast for a spike to $3,500 an ounce in the second quarter, while BNP Paribas SA raised its outlook to show average prices well above $3,000.
Spot gold traded at $2,983.50 an ounce at 2:19 p.m. in Singapore, up 14% this year. The Bloomberg Dollar Spot Index was flat. Silver edged lower after nearing $34 an ounce. Platinum and palladium rose.