Gold briefly surpasses $3,000, touching new record amid economic uncertainty
Published: 14:15 14 Mar 2025 EDT
Gold prices surged past $3,000 per ounce in a historic milestone during today’s trading session.
“Gold prices recorded a historic milestone during today’s trading session by briefly touching $3,000 per ounce, consolidating its role as a safe-haven asset amid a global scenario marked by intense trade tensions and expectations of relative changes in US monetary policy,” said Quasar Elizundia, expert research strategist at Pepperstone.
Despite the psychological significance of the level, gold was unable to sustain trading above $3,000, as a moderate rebound in global stock markets toward the end of the week tempered demand for the metal.
“This relief in equities comes after days marked by uncertainty over trade escalations—particularly among the US, the EU, and China—fueling fears of a possible economic recession,” Elizundia added.
The easing of inflation data in the US, including the Consumer Price Index (CPI) and Producer Price Index (PPI), has provided additional support for gold prices. “Especially noteworthy was the CPI’s return to a disinflationary trend, which could lead the Federal Reserve to relatively soften its monetary stance,” said Elizundia.
Market expectations now point to up to three interest rate cuts in 2025, in contrast to the Fed’s December forecast of just one.
Gold’s near-term trajectory remains tied to the Federal Reserve’s upcoming policy decisions.
“Although resistance at $3,000 is evident, from an operational perspective there remains the possibility of an additional advance toward $3,040 per ounce, particularly if the Fed adopts a more accommodative tone in its upcoming meeting on Wednesday,” Elizundia noted.
Joseph Dahrieh, managing principal at Tickmill, highlighted mounting trade tensions and recession fears as key drivers behind gold’s recent gains.
“After several back-and-forths on tariffs this week, market uncertainty surged following President Trump’s announcement of a 200% tariff on alcoholic imports from the EU, fueling risk aversion and boosting demand for safe-haven assets like gold,” Dahrieh said.
Economic concerns could further bolster gold’s appeal.
“A cooling labor market and slowing inflation could push the Federal Reserve toward a more dovish stance at its next meeting, potentially driving gold prices to new records. However, a cautious tone, driven by inflation concerns over ongoing trade tensions, could limit the precious metal rally,” Dahrieh explained.
Geopolitical developments also play a pivotal role in shaping market sentiment.
“A ceasefire between Ukraine and Russia could improve investor sentiment, potentially weakening gold’s bullish trend,” said Dahrieh.
“However, the agreement remains to be seen, with Russian President Vladimir Putin leaving room for renewed uncertainty that may bolster gold prices once again.”
Here's a look at some of the news in the gold sector this week:
Falcon Gold Corp (TSX-V:FG, OTC:FGLDF) has released high-resolution images from the first two drill holes from its 2024 exploration program at the Great Burnt copper-gold project in Newfoundland.
The images provide a detailed look at the core samples, showcasing promising geological characteristics and mineralization.
Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) is poised to re-rate this year driven by a wave of cash flow that will enable supernormal shareholder returns, that’s according to analysts at Berenberg.
The European bank, in a note, has repeated a ‘buy’ recommendation with a price target of 2,100p (current price: 1,646p).
Silver Mines Ltd has kicked off diamond drilling at the Elsienora Project, adjacent to the company’s Tuena Gold Project, 80 kilometres south of the city of Orange in New South Wales.
Elsienora was acquired as an exploration licence application in 2023 and now forms part of the broader Tuena Gold Project portfolio.
Follow-up diamond drilling at Ora Banda Mining Ltd’s Little Gem prospect part of the high-grade Riverina Gold Camp, has confirmed two significant lodes at depth.
Liberty Star (OTCQB:LBSR) has announced changes to its leadership team to advance the Red Rock Canyon and Hay Mountain projects in Arizona.
The company has appointed Steve Rivera to oversee geological management for the exploration projects.
Sidney Resources Corporation (OTC:SDRC) announced it is advancing its environmental initiatives through new partnerships with Mycleanium and Redstone Innovations.
The company highlighted that these collaborations focus on introducing innovative bioremediation technologies to enhance ecological restoration in mining areas.
Hochschild Mining PLC (LSE:HOC, OTCQX:HCHDF) shares leapt 15% higher as the gold miner restored its dividend and announced its best financial performance for 13 years thanks to the record precious metals prices.
Profit before tax and exceptional items surged 272% to $199.1 million, with EBITDA rising 54% to $421.4 million, on revenue up 37% to $947.7 million for the 2024 calendar year.
Excellon Resources Inc (TSX:EXN, OTCQB:EXNRF) announced that it has finalized an agreement to acquire Minera CRC SAC, the owner of the past-producing Mallay Silver Mine and the Tres Cerros exploration property in Peru.
This deal, reached with Adar Mining Corp and Premier Silver Corp, ensures Excellon will take full ownership of Minera CRC through a court-supervised process designed to resolve prior disputes.
Having wrapped up the first phase of reverse circulation (RC) drilling, Pantoro Ltd has fielded positive gold results at the Hinemoa Fault on the Polar Bear peninsula, a key target within its Norseman Gold Project in Western Australia.
Shares in Orosur Mining Inc (AIM:OMI, TSX-V:OMI) jumped as much as 8% in early trading on Monday after the company released promising new drilling results from its flagship Anzá gold project in Colombia.
Investors were encouraged by fresh assay results from the Pepas prospect, which confirmed substantial gold mineralisation over thick intervals. One standout drill hole returned 62.5 metres at 5.4 grams per tonne of gold, while another intercepted nearly 80 metres of mineralisation.
