Gold surged past $3,000 an ounce for the first time, reaching a new all-time high as investors sought safety amid rising economic uncertainty in the U.S. and escalating geopolitical risks in the Middle East.
The precious metal edged higher on Tuesday, building on a 0.6% gain from the previous session, after Israel launched airstrikes on Hamas targets in Gaza. The renewed military action threatens to destabilize an already fragile ceasefire, with Palestinian residents reporting multiple airstrikes across the region.
Economic Uncertainty Drives Safe-Haven Demand
Gold’s rally was further fueled by weaker-than-expected U.S. retail sales data for February, which signaled slowing consumer spending. This, combined with a decline in 10-year Treasury yields, supported demand for the non-interest-bearing asset.
Despite signs of economic weakness, the data did little to shift market expectations regarding potential Federal Reserve rate cuts. However, concerns over declining consumer sentiment, financial stress, and escalating trade tensions under President Donald Trump’s administration have contributed to a more cautious outlook among investors and economists.
Gold Extends 2024 Gains, Banks Raise Price Targets
With persistent fears of a slowdown in both the U.S. and global economies, gold continues to solidify its role as a store of value in times of uncertainty. The metal has already climbed more than 14% this year, extending its strong upward momentum from 2024. Major banks have recently raised their gold price forecasts, reflecting growing investor confidence in the metal’s resilience.
Market Overview
As of 9:49 a.m. in Singapore, spot gold was up 0.1% at $3,004.19 an ounce after briefly surpassing $3,005 for the first time. The Bloomberg Dollar Spot Index also gained 0.1%. Meanwhile, silver remained flat, while platinum and palladium saw slight increases.
With economic and geopolitical risks intensifying, gold’s upward trajectory highlights its continued appeal as a safe-haven asset in an increasingly volatile market.
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