World gold price surpasses 3,000 USD mark for the first time

Gold prices have surpassed $3,000 an ounce for the first time in history as investors seek safe-haven assets amid concerns over US tariffs and geopolitical tensions.

CNN reported that the price of gold reached a historic level of 3,005 USD/ounce on March 14, but later fell back below 3,000 USD/ounce.

World gold price sets historic milestone on March 14 amid global instability

The sharp rise in gold prices is one of many signs that investors are worried about the US economic outlook, according to former US Treasury Secretary Larry Summers. According to the secretary, the rise in gold prices is a sign of uncertainty. "That's what people do when they don't have confidence in the person running the country," Mr. Summers said.

On March 12, the US began collecting a 25% tax on all imported aluminum and steel, leading to a quick response from Canada and the European Union (EU).

On March 13, Mr. Trump also threatened to impose a 200% tax on alcoholic beverages from the EU unless the union withdrew the 50% tax imposed on American wine the day before.

Trump tariffs on metal imports take effect, EU quickly retaliates

The White House's trade policies have created uncertainty that is paralyzing businesses as they wonder whether to invest at this time. Those factors have increased fears of a global recession.

In addition, the conflict in Ukraine is also a factor that has caused gold prices to reach a new peak. On March 13, Russian President Vladimir Putin said he supported the ceasefire but raised many questions about the US proposal and proposed conditions that Ukraine would find difficult to accept.

Russia’s move could be seen as a protest, rekindling geopolitical uncertainty. The prospect of a prolonged conflict underpins gold prices in the long term.

Trevor Greetham, senior investor at Royal London Asset Management, said the current gold price is 60% higher than when Russia began its military campaign in Ukraine in 2022. Gold has increased in price by nearly 14% this year, partly due to concerns about the impact of the tariff war between the US and other countries, which led to the recent stock market sell-off, according to Reuters.

“Central banks, including the People’s Bank of China, have been adding to their gold reserves rather than risk having their foreign reserves confiscated as happened to Russia,” said Mr. Greetham.

Source: https://thanhnien.vn/gia-vang-the-gioi-lan-dau-vuot-moc-3000-usd-18525031509393007.htm