Gold prices top $3,000 as macro, geopolitical fears hit risk appetite
By Benjamin Chiou
Date: Friday 14 Mar 2025
(Sharecast News) - Gold prices topped the $3,000 mark for the first time in history on Friday as investors continue to seek safe havens amid fears about the global economy and the uncertain geopolitical environment.
Continuous gold futures were up 0.44% at $3,004.60 an ounce on COMEX by 1411 GMT, having touched a high of $3,017.10 earlier on.
"Gold surged to yet another record high as President Donald Trump's aggressive tariff blitz and a weaker-than-expected inflation print stoked fresh fears over US growth, driving investors into safe-haven assets," said Stephen Innes, managing partner at SPI Asset Management.
"The equation remains simple for gold: the higher the tariffs, the greater the uncertainty - and the stronger the bid for bullion."
Concerns about the US economy - not to mention the world economy - have risen in recent days after Trump refused to rule out a recession this year as the impact of his protectionist trade measures begin to be felt.
On Thursday, Trump threatened to slap a 200% levy on alcoholic products coming from the EU after the region imposed retaliatory tariffs on US-made whiskey, motorcycles and motorboats.
Both US consumer price and wholesale inflation figures for February came in lower than forecasts this week. The downside surprise, on the face of it, would usually be welcomed by markets given the rising inflationary pressures likely to come from the escalating trade war - though they could also signal a slowdown in consumer demand.
Data on Friday, meanwhile, showed that consumer confidence in the US dropped to its lowest level in 29 months.
The US dollar index, which tracks the greenback against a basket of other currencies, was down 0.1% at 103.73, trading at a four-month low/
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