Gold reached $3,000 per ounce for the first time in history
- Gold prices have hit a historic $3,004.86 per ounce
- It’s down to increased demand for safe assets amid global insecurity
- This atmosphere has been driven by global conflicts and trade wars
Published on Mar 17, 2025 at 8:22 PM (UTC+4)
by Amelia Jean Hershman-Jones
Last updated on Mar 17, 2025 at 9:54 PM (UTC+4)
Edited by
Kate Bain
On Friday, the price of gold hit a historic $3,004.86 per ounce due to increased demand for safe-haven assets.
The upward trajectory in cost happened as demand for the precious metal surged.
This has happened amid economic uncertainty over the impact of a global trade war.
Prices have risen a massive 14 percent since January.
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The reason for the surge in the price of gold per ounce
Gold is traditionally sought after as a luxury good in times of economic instability. That makes it a popular choice for investors amidst growing uncertainty.
The escalating US trade war with its largest trading partners has unsettled traditional financial markets. It’s also raised concerns about its effects on economies and consumers.
There are fears of rising inflation, as businesses may pass extra costs on to consumers, increasing the cost of living.
Amid US-EU Tensions, POTUS Donald Trump threatened a 200 percent tariff on alcohol imports from the EU in response to the EU’s 50 percent tax on US whiskey imports, per AP.
Trump has also raised tariffs on Chinese imports to at least 20 percent, which has further contributed to market uncertainty.
Current geopolitical tensions in the Middle East and between Russia and Ukraine are also driving uncertainty while boosting the demand for gold.
History repeating itself
Central banks, including China’s, are buying large quantities of gold, with some diversifying away from weakening US dollars amid worldwide economic concerns to protect against asset seizure.
Gold acts as a hedge for investors during a global economic slowdown.
This isn’t the first time we’ve seen this uptick, however, as prices often surge during times of economic crisis.
One example in living memory was the 2007 global financial crisis, which saw investors flocking to buy gold for financial security.
After dipping below $1,200 per ounce in 2018, the price of gold has been steadily rising.
This upsurge was fueled by multiple factors, including the COVID-19 pandemic and increasing government deficits leading to changes in trade policy.
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London-based Amelia cut her journalistic teeth covering all things lifestyle, wellness, and luxury in the UK capital. Fast-forward a decade and the senior content writer and editor has put pen to paper for glossy magazines, busy newsrooms, and coveted brands. When her OOO is on from writing about cars and heading up on-site SEO you can find her spending quality time with her young family, in the gym, or exploring the city she loves.
