Gold hits record high over $3,000 amid geopolitical tensions and weakening US dollar
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It’s been a record-breaking year for gold, as nervous investors have sought out safe-haven assets.
And this morning, the precious metal has hit a fresh all-time high above $3,000 per ounce, driven by escalating geopolitical tensions in the Middle East, trade war fears and the weakening US dollar.
Gold touched $3,017.64 per ounce, as news broke that Israeli military forces have launched widespread strikes on targets across Gaza early today, leading to fears that the shaky ceasefire in the region is over.
This means gold has climbed by 15% since the start of this year, having ended December at $2,623/ounce, adding to its 27% surge during 2024.
As this chart shows, it has now doubled over the last five years:
The recent weakness of the US dollar has also pushed up the gold price. The greenback is trading near a five-month low against a basket of other currencies, as traders worry that Donald Trump’s enthusiasm for tariffs will trigger a full-blown trade war, that could push the US into recession.
As analysts at Deutshe Bank put it:
Investors continue to rotate away from the US dollar and find perceived safe havens amidst the heightened policy uncertainty.
Linh Tran, market analyst at XS.com, reports that rising tensions in the Middle East and the escalating U.S.-China trade conflict have both driven investors toward gold as a safe investment channel, adding:
These uncertainties have not only increased demand for gold but have also pushed significant capital inflows into the precious metals market, contributing to gold reaching record-high prices.
The agenda
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9.30am: ONS releases changes to the UK inflation basket
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10am GMT: ZEW eurozone economic confidence survey
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12.30pm GMT: US housing starts/building permits data for February
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1.15pm GMT: US industrial production for February
Key events
Closing post
Time to wrap up…
The company hopes to agree a deal by the end of June, and complete it by the end of September.
Its appeal to lift customers bills by more than regulators allowed has been paused while talks continue, but the CMA will consider appeals by five other water companies.
Geopolitical tensions have pushed the gold price to a new all-time high of $3,038 per ounce. Analysts said the weaker dollar, and fears of a global trade war, were fuelling a new gold rush.
The dollar has recovered ground this afternoon, after slipping to a four-month low which saw the pound trade at $1.30 for the first time since November.