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

March 18, 2025 admin No Comment 8 Views

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Australian bank ANZ reckons gold has further to climb.

ANZ raised its zero to 3-month gold price forecast to $3,100 per ounce and 6-month forecast to $3,200 per ounce, according to a research note on Tuesday, Reuters reports.

They say:

[For gold] we maintain our bullish view, amid strong tailwinds from escalating geopolitical and trade tensions, easing monetary policy, and strong central bank buying.

They also point out that physical gold has been moving from London to the US, as fears that Donald Trump could impose tariffs on precious metal imports have raised prices States-side:

“As for the gold market, fear of import tariffs has tightened liquidity in the London spot market, as supply flows to the U.S. This has triggered arbitrage trades, with a widening spread between Comex futures and London spot”.

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:

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.