Gold prices have reached unprecedented levels, and experts predict they may continue climbing past $3,000 per ounce due to escalating global tensions, trade conflicts, and the rising demand for safe-haven assets.
Factors Driving the Surge in Gold Prices
Gold recently hit a record high of $3,000 per ounce, driven by increasing investor demand for safe-haven assets amid growing economic uncertainty. This surge is largely attributed to the ongoing tariff disputes, with the US-China trade war causing ripple effects across global markets. According to Khaleej Times, analysts predicted last October that gold prices could reach $3,000 in early 2025, bolstered by geopolitical unrest, central banks’ purchasing behavior, and interest rate cuts.
Economic Concerns and the Impact of Tariffs
As of the latest report, gold closed at $2,986.65 per ounce, up by 0.23 percent. In Dubai, the price of gold hit a record high on Friday, with 24K at Dh360.75 per gram, 22K at Dh335.75, 21K at Dh322, and 18K at Dh276 per gram. Despite a slight dip over the weekend, analysts predict that the economic environment could further drive gold prices upward. 
Joseph Dahrieh, managing principal at Tickmill, emphasized that growing concerns over the stability of the US economy are likely to increase the appeal of gold. A cooling labor market and a potential shift to more dovish Federal Reserve policies could push gold prices to even higher levels.
The tariff war between the US and the European Union continues to fuel market uncertainty. President Donald Trump’s recent announcement of a potential 200 percent tariff on European-imported goods such as champagne and wine has intensified risk aversion, leading to greater demand for gold as a secure investment.
The US Dollar Weakness and Geopolitical Tensions
Ahmad Assiri, a research strategist at Pepperstone, also pointed to tariff threats as a key factor in the current rally of precious metals. With the US considering tariffs on goods from Canada, Mexico, and the EU, and the potential impact on the global economy, investors are flocking to gold as a safe-haven investment.
Moreover, the weakening of the US dollar, which has fallen below the 104 level, further supports gold’s upward momentum. As concerns about US economic growth and global instability rise, gold continues to be seen as an attractive investment for international buyers.
