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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All Supercar Blondie contributors undergo editorial review and fact-checking to ensure accuracy and authority in automotive journalism. After gaining her BA Hons in French and English at the University of Nottingham, Amelia embarked on a vocational diploma from the National Council for the Training of Journalists (NCTJ). This led to numerous opportunities, from interning at Vogue to being on the small team that launched Women’s Health magazine in the UK, which was named the PPA Consumer magazine of the year for three years running. As Health, Beauty and Fitness editor, Amelia personally received a Johnson & Johnson Award and was shortlisted for both PPA and BSME titles. Since then, Amelia has created content for numerous titles and brands, including the Telegraph, 111 Skin, Waitrose, Red magazine, Stylist, and Elle, as well as being Head of Content at Vitality and Editor in Chief at INLondon magazine. “My superpower is translating technical jargon about the mechanical workings of a supercar into a relatable story you’ll want to share with your friends after you’ve read it.” After joining the SB Media family as a senior journalist in September of 2023, Amelia’s role has evolved to see her heading up the SEO output of the editorial team. From researching the most ‘Google-able’ key terms to producing evergreen content - it’s been a time of hard work, growth, and success for the editorial team and the Supercar Blondie website. “I like to think of myself as a ‘method journalist’. In other words: I live and breathe whatever I am writing about. When writing about fitness, I trained as a personal trainer, and as a beauty editor, I completed an ‘expert’ in scent diploma with the Fragrance Foundation. “During my tenure at Supercar Blondie, however, I did something I never thought possible: I passed my driving test at the age of 36. One day I’d love to train as a mechanic to better understand what happens under the hood, too. “My sweet spot is providing readers with a ‘takeaway’ (read: something new they didn’t know before) after reading every one of my stories. While I don’t claim to be an expert in the automotive world, I know the experts and bodies in the field to rely on to provide our readers with an informative and thought-provoking story every time they visit the site.”
