Gold prices hit a new record high, approaching $3,000 per ounce

Gold prices rose during trading on Thursday, March 13, to a new record high, approaching $3,000 per ounce, supported by rising uncertainty over tariffs and expectations of monetary policy easing from the US Federal Reserve.

Spot gold prices rose 1.6% to $2,979.76 per ounce at 1:55 PM ET (17:55 GMT), after hitting their 12th record high of the year earlier in the session.

Prices of the metal have risen about 14% since the beginning of the year, following a strong 27% increase in 2024.

US gold futures rose 1.5% to settle at $2,991.30, according to Reuters.

“Gold is in a long-term bull market,” said Alex Epkarian, chief operating officer of Allegiance Gold. We expect prices to range between $3,000 and $3,200 this year.”

US President Donald Trump’s erratic trade policies have supported gold, which is considered a preferred asset for investors during times of geopolitical and economic turmoil. US Commerce Secretary Howard Lutnick said that an economic recession “would be helpful” for implementing Trump’s economic policies.

The next big event is the Federal Reserve’s monetary policy meeting next Wednesday. The central bank is expected to keep its benchmark overnight interest rate at a range of 4.25%-4.50%.

“It’s impossible to model the potential impact of tariffs and trade threats, forcing the Fed to evaluate economic data to help determine its next move,” said John Ciampaglia, CEO of Sprott Asset Management.

He added, “We believe the Fed is stuck in a wait-and-see mode.”

The Fed has cut interest rates by 100 basis points since September but paused its easing cycle in January. Traders expect the central bank to resume interest rate cuts in June, according to the CME’s FEDWATCH tool.

This comes after US Labor Department data revealed that producer prices unexpectedly held steady in February, while the consumer price index rose 0.2% last month after accelerating 0.5% in January.

“Strong demand for exchange-traded funds (ETFs) and continued central bank buying amid geopolitical uncertainty and ongoing uncertainty surrounding tariff changes have contributed to the strengthening of gold appetite,” said Standard Chartered analyst Suki Cooper.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, announced that its holdings of the metal rose to 907.82 metric tons on February 25, the highest level since August 2023.

This coincides with China continuing to buy gold for the fourth consecutive month in February, according to data from the People’s Bank of China. Among other metals, spot silver prices rose 1.4% to $33.69 per ounce. Platinum rose 0.6% to $990.25, while palladium rose 0.9% to $956.99. “A strong break above $33.30 could open the door for silver to reach $34,” said Lukman Otunuga, senior research analyst at FXTM.