Gold has reached another historic milestone, surpassing $3,000 per ounce for the first time and setting a new all-time high of $3,046.04 this morning.
This marks another leg in gold’s third major bull run, following similar rallies in the 1970s and 2000s, and means gold has now doubled in value over the past five years in USD.
The dollar continues to weaken as markets weigh up the impact of trade tariffs, and how the US economy can hold up. The Federal Reserve is not expected to make any changes to US interest rates at today’s FOMC meeting, but any indications of further rate cuts due to a slowing economy could prompt some further weakness in the dollar.
Gold is up more than 4% this week alone in USD, and continues to trade close to this morning’s all-time high.
With a weaker dollar helping the pound hit $1.30 for the first time since November, gold has yet to recapture the GBP record of £2,382, while the Euro gold price also remains shy of the record, but is closing in on €2800 once more. Any sterling weakness around the Spring Statement next week however could quickly propel gold past this level towards £2,400, while the Euro could see further weakness as the trade war continues to develop.
In addition to market volatility amid escalating trade tensions between the US and major economies, ongoing geopolitical uncertainty in the Middle East and the Ukraine-Russia war continues to drive safe-haven demand for gold. In particular, attacks by Israel on Gaza have ended the recent ceasefire and mark another escalation in the conflict.
Silver has also surged on the back of a weaker dollar, reaching $34 per ounce, a price not seen since 2012. For UK investors, silver is trading at £26 per ounce, its highest level since 2011 and within reach of the UK record of £29.
The fundamentals for gold remain strong, and while some selling pressure is possible after its 15% gain in 2025, analysts are raising their price forecasts. With safe-haven demand showing no signs of slowing, more investors are turning to gold as a trusted, physical asset to diversify and protect their portfolios.
