Gold prices hit a new record as escalating tensions in the Middle East and concerns over the US economy drove investors toward the safe-haven asset. US gold futures climbed 0.8% to $3,030.11.
The surge comes as Israeli airstrikes on Gaza killed over 320 people, collapsing a two-month ceasefire. Meanwhile, US President Donald Trump has pushed forward with new tariffs, including a 25% duty on steel and aluminum, with additional levies expected in April.
Investors are also watching the Federal Reserve, which has held rates steady after three cuts in 2024. Market expectations suggest easing could resume in June, potentially pushing gold even higher. The metal, which has gained over 14% this year, has hit record highs 14 times.
Inflows into gold-backed ETFs continued for a fifth consecutive day on Monday. The amount of gold held in ETFs has risen 5% this year. Major banks, including ANZ and UBS, have raised their gold price forecasts, with some predicting a rise to $3,200 in the coming months.
Despite breaking the $3,000 barrier, analysts caution that this level may act as strong resistance in the short term. However, continued geopolitical and economic uncertainty could keep gold’s upward momentum intact.