Home news Gold hits record high over $3,000 amid rising geopolitical tensions and weakening US dollar – business live | Business

Gold hits record high over $3,000 amid rising geopolitical tensions and weakening US dollar – business live | Business

by wellnessfitpro

Gold hits record high over $3,000 amid geopolitical tensions and weakening US dollar

Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.

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:

A chart showing the gold price over the last five years
A chart showing the gold price since 2020 Photograph: LSEG

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

  • 9.30am: ONS releases changes to the UK inflation basket

  • 10am GMT: ZEW eurozone economic confidence survey

  • 12.30pm GMT: US housing starts/building permits data for February

  • 1.15pm GMT: US industrial production for February

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Key events

“In the current environment, every day seems to offer a new catalyst for the gold price,” comments Kathleen Brooks, research director at XTB.

Today, it’s tensions in the Middle East, where the Gaza ceasefire has been shatted as hundreds of people are killed and injured as Israeli military forces hit dozens of targets.

But, growth fears are also fuelling the price surge, she adds:

In uncertain times, central banks and individuals demand gold, while inflation concerns emanating from President Trump’s tariffs and trade war are also boosting the price of gold.

Life above $3,000 per ounce could be the norm for the gold price in 2025, it is already higher by 15% YTD, easily outpacing gains for global equities.

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