Gold Reaches All-Time High Amid Concerns Over US Economy and Middle East Tensions

Gold reached a new all-time high, surpassing $3,000 an ounce as investors considered US data that raised worries about a potential economic slowdown. Additionally, escalating tensions in the Middle East further highlighted the precious metal’s appeal as a safe haven.

Following a 0.6% gain on Monday, bullion edged slightly higher after Israel announced military strikes on Hamas targets in Gaza on Tuesday, a move that risks destabilizing a fragile truce. Palestinian witnesses reported numerous Israeli airstrikes across various regions of the Gaza Strip.

Traders were also analyzing US retail sales data, which showed a less-than-expected increase for February, as noted in a report released on Monday. Yields on 10-year Treasuries dropped, contributing to the appeal of non-interest-bearing gold.

Despite the figures indicating weak consumer spending on goods, there were no signs of a significant downturn, and the data did little to change traders’ expectations regarding Federal Reserve rate cuts. However, companies, investors, and economists remain wary as consumer sentiment declines and signs of financial stress intensify, amid the risks of escalating trade wars initiated by US President Donald Trump.

The deteriorating outlook for both the US and global economies has emphasized bullion’s role as a store of value during uncertain times. The metal has risen over 14% so far this year, continuing its strong upward trend into 2024. Recently, several major banks have raised their price targets for this year.

As of 9:49 a.m. in Singapore, spot gold was up 0.1% at $3,004.19 an ounce, having surpassed $3,005 for the first time. The Bloomberg Dollar Spot Index increased by 0.1%. Silver remained unchanged, while platinum and palladium saw slight increases.

© 2025 Bloomberg

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