Gold Surges Past $3,000 Amid Trade War and Geopolitical Fears
On March 14, 2025, gold prices exceeded $3,000 per ounce for the first time, driven by geopolitical uncertainties and Trump's escalating trade war. Central banks are diversifying reserves amid a weakening dollar, while fears of a global slowdown and complications over the Ukraine ceasefire fuel gold's appeal as a safe-haven asset.
hassan benyoub 
March 14, 2025 – Gold broke through the $3,000-per-ounce threshold for the first time in history on Friday, propelled by its status as a safe-haven asset amid escalating geopolitical uncertainties and a U.S.-led trade war under President Donald Trump. The precious metal peaked at $3,004.94 per ounce, trading at $2,990.20 by 10:40 GMT (11:40 Paris time), a 3.36% daily gain, after surpassing its previous February record on Thursday.
Trump’s Trade Threats Ignite Gold Rally
The latest spike follows Trump’s Thursday announcement of a 200% tariff on European wines, champagnes, and other alcoholic beverages, contingent on the European Union (EU) dropping its planned 50% duties on American whiskey. This tit-for-tat escalation—building on U.S. tariffs of 25% on EU steel and aluminum effective Wednesday, met with EU countermeasures on U.S. bourbon, motorcycles, and boats—has stoked global economic jitters. French Economy Minister Eric Lombard branded it a “stupid war” with the U.S., reflecting widespread alarm.
“The equation for gold is straightforward: higher tariffs mean greater uncertainty, driving stronger demand,” said Stephen Innes of SPI AM. “Fears of a global growth slowdown, worsened by these trade barriers, cement gold’s role as the ultimate hedge in an increasingly shaky economic landscape.”
Geopolitical Tensions Bolster Demand
Beyond trade, doubts over a U.S.-proposed 30-day Ukraine ceasefire—endorsed by Kyiv but met with Putin’s insistence on resolving “important questions”—have amplified market unease. On Thursday, Putin highlighted unresolved issues like enforcement and Kursk’s status, where Russian forces recently reclaimed Gontcharovka. Ukrainian President Volodymyr Zelenskyy countered Friday, warning of Putin’s “predictable and manipulative” tactics. Russ Mould of AJ Bell noted, “Uncertainty over the Ukraine-Russia peace deal has further fueled gold’s rise.”
Central Banks Fuel the Surge
Gold’s ascent also reflects a rush by central banks to diversify reserves amid a wobbly U.S. dollar. Since Russia’s 2022 Ukraine invasion triggered the freezing of its foreign-held reserves, nations have pivoted from dollar-denominated assets. “Globally, central banks are boosting gold holdings in response to the unsustainable U.S. debt structure and growing doubts about the dollar’s dominance as the world’s reserve currency,” said Daniela Sabin Hathorn of Capital.com. China, Russia, and others have steadily amassed bullion, a trend intensified by Trump’s tariff unpredictability.
Market Sentiment and Outlook
Friday’s milestone—highlighted by posts on X noting gold’s breach of $3,000 amid Trump’s trade salvos—caps a year of successive records. After starting 2025 at $2,600, gold has soared nearly 15%, outpacing earlier forecasts like Citi’s $3,000 target within three months (set February 6). Analysts now eye $3,500 or higher by summer if tensions persist. While briefly dipping below $3,000 midday, gold’s weekly close is poised to set a new high, reinforcing its allure as stocks falter and consumer sentiment, per BullionVault, sinks to Covid-era lows.
As Trump’s policies—from tariffs to ceasefire advocacy—roil markets, gold stands as a bulwark against a storm of trade wars, geopolitical strife, and dollar doubts, with no immediate end in sight.
