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Gold Reaches Record $3,000 Per Ounce Amid Economic Turmoil

Gold prices exceed $3,000 per ounce, fueled by demand as economic uncertainty grows from escalating trade tensions.

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Gold prices have surpassed the $3,000 mark for the first time, driven by investor demand amid escalating trade wars and geopolitical tensions, leading to a 14% increase since early 2025. The surge indicates a flight to safety as uncertainty around tariffs and inflation fears rises. Former Treasury Secretary Larry Summers suggests this reflects a lack of confidence in economic management. Central banks are also increasing gold reserves, adding to market dynamics. Analysts predict the uptrend may continue if economic anxiety grows further.

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Gold price hits $3,000 as trade tensions mount
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Gold prices are being driven by a combination of factors including a central bank buying spree, economic fragility worldwide, and escalating trade tensions fueled by U.S. President Donald Trump's policies. Additionally, geopolitical tensions and inflation concerns are contributing to gold's appeal as a safe-haven asset.

Central banks, particularly those in emerging markets like China, India, and Turkey, have been actively buying gold to diversify their reserves away from dollar-denominated assets. This sustained purchasing has significantly supported gold prices.

Trade tensions and tariffs, especially those initiated by U.S. President Donald Trump, have increased economic uncertainty, leading investors to seek safe-haven assets like gold. This has driven up demand and prices for gold.

Analysts maintain a bullish stance on gold, predicting prices could reach new highs, such as $3,050 per ounce in 2025, driven by ongoing economic and geopolitical concerns. The Federal Reserve's potential rate cuts are also expected to support gold prices.

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