GOLD PRICES crossed US$3,000 per ounce for the first time on Friday as investors sought protection from economic uncertainty and escalating trade tensions.
Spot gold reached US$3,004.86 per ounce before retreating to approximately US$2,986.26 at 18:01 GMT, according to Reuters.
US gold futures settled approximately 0.3% higher at US$3,001.10 per ounce.
The milestone followed a rally of nearly 14% since the start of the year. Concerns about US President Donald Trump’s tariffs and their potential economic effects contributed to demand for bullion.
Expectations of further Federal Reserve rate cuts also supported investor interest. Lower interest rates can reduce the opportunity cost of holding gold, which does not pay interest.
Central bank purchases remained another source of support. China increased its gold reserves for a fourth consecutive month during February.
Silver was approximately unchanged at US$33.80 per ounce at the Reuters reporting point.
Gold’s retreat below US$3,000 later in the session illustrates that a major price milestone can be accompanied by profit-taking and short-term fluctuations, even during a strong broader rally.
Disclaimer
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