Gold prices reached a new record high of $3,028.24 per ounce on Tuesday. This comes amid escalating tensions over Gaza and uncertainty surrounding U.S. trade policies under former President Donald Trump’s tariffs. Heavy Israeli airstrikes in Gaza have resulted in more than 320 fatalities.
Gold recently crossed US$3,000/oz intraday – a headline-worthy event, but the true significance for #gold lies in the broader economic trends driving its rise. Learn more: https://t.co/vo4gygLKjS pic.twitter.com/WcwGYsDbNQ
— World Gold Council (@GOLDCOUNCIL) March 18, 2025
This has escalated the conflict in the region and driven investors toward safe-haven assets like gold. The market is also closely watching the U.S. Federal Reserve’s policy meeting expected to conclude this week. The meeting could significantly impact economic forecasts and monetary policy.
Without wanting to be excessively "smuggus maximus" – I've been writing about this for more than ten years: https://t.co/tdiJv6dzck
— Andrew Craig (@andyroocraig) March 17, 2025
Bullion climbed as much as 0.9% as Israel launched military strikes on Hamas targets in Gaza. This move threatens to undermine a shaky truce. Hamas said at least 322 people had been killed or were missing since the airstrikes began.
Gold Climbs to Record on Fears for US Economy, Mideast Tensions
Spot gold was up 0.1% to $3,004.19 an ounce at 9:49 a.m. in Singapore.
Banks who predicted gold to touch $3000 are still bullish. https://t.co/b3R1av05gD
— Sadaf Sayeed 🇮🇳 (@Sadafsayeed) March 18, 2025
Traders were also digesting U.S. retail sales data released Monday.
Gold prices soar amid global turmoil
The data rose less than forecast in February.
While the figures pointed to weak spending on goods, there was no sign of a severe pullback. The data did little to alter traders’ bets on expectations for Federal Reserve rate cuts. Companies, investors, and economists remain cautious as consumer sentiment sours and signs of financial stress mount.
This is amid risks of escalating trade wars sparked by U.S. President Donald Trump. The gloomier outlook for both the U.S. and global economy has underscored bullion’s role as a store of value in uncertain times. The metal is up 15% so far this year, extending its strong annual advance in 2024.
Several major banks have hoisted their price targets for this year higher in recent weeks. Inflows into physically-backed gold exchange-traded funds continued for a fifth consecutive day on Monday. The amount of gold held in ETFs has risen 5% this year, after dropping for the past four years.
Rahul Paswan, Kavya Balaraman, and Ashitha Shivaprasad contributed to this report from Bengaluru.