Singapore March 18 2025: Gold prices scaled a record peak above the crucial $3,000-mark on Tuesday for the second time within a week, as investors sought cover from economic concerns fuelled by U.S. President Donald Trump’s tariff policies.
Spot gold was up 0.4% at $3,012.74 an ounce as of 0420 GMT after hitting a record high of $3,014.83 per ounce earlier in the session.
Gold rose above the $3,000/oz milestone for the first time on Friday.
U.S. gold futures rose 0.5% to $3,021.70.
“Gold is moving higher on account of a weaker dollar and continued tariff uncertainties … With Gold at record highs there is a lot of technical and chart based buying that kicks in since there is no resistance apparent on the charts,” said Marex analyst Edward Meir.
The U.S. dollar index (.DXY) wallowed near a five-month trough, making gold cheaper for overseas buyers.
Historically considered a hedge against geopolitical instability, gold has risen more than 14% so far this year. Since Trump took office in January, gold has hit a record high 14 times as trade tensions have boosted safe-haven demand.
Trump has floated plans for a series of U.S. tariffs, from a flat 25% on steel and aluminium which came into effect in February, and reciprocal and sectoral tariffs that he said will be imposed on April 2.
ANZ raised their up to 3-month gold price forecast to $3,100/oz and 6-month forecast to $3,200/oz, citing escalating geopolitical and trade tensions, easing monetary policy and strong central bank buying.
New economic projections from Federal Reserve officials this week will provide the most tangible evidence yet of the likely impact of Trump administration policies.
Forecasters have marked down their expectations for U.S. growth this year, raised concerns about a potential recession, and expect increased inflation.
Meanwhile, “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.
Spot silver gained 0.2% to $33.9 an ounce, platinum added 0.4% to $1,004.0 and palladium rose 0.6% to $970.49.
