Gold surpasses $2,900 on growing global uncertainty

The price of gold has once again demonstrated its strength by breaking past the $2,900 per ounce mark, reflecting a 0.6% gain in the session and a 1.8% increase for the week on Tuesday.

This renewed upward momentum is largely tied to the unstable geopolitical environment and trade tensions, which have driven demand for safe-haven assets, solidifying gold as one of the primary options for protection.

On the geopolitical front, the recent breakdown in negotiations between the United States and Ukraine, highlighted by an intense exchange of rhetoric between President Trump, Ukrainian President Zelenskiy, and Senator JD Vance at the White House, has raised doubts about the stability of diplomatic relations.

At the same time, Europe is engaged in a race against time to restore dialogue between Washington and Kyiv, amid initiatives led by the United Kingdom and France to contain escalating tensions.

This uncertainty has driven increased demand for defensive assets like gold.

Meanwhile, the escalation of trade wars has also played a crucial role in gold’s rise. The imposition of new punitive tariffs by the United States on Canada, Mexico, and China – reaching up to 25% – has created a climate of heightened uncertainty in financial markets, affecting multiple sectors and fueling concerns about inflationary pressures and weaker economic growth. Given this outlook, investors have opted to strengthen their positions in more stable assets, further boosting gold prices.

Looking ahead, gold’s upward trajectory is expected to continue, driven by perceived geopolitical risks and lingering questions over the depth and duration of trade conflicts. The market is watching closely to see if gold surpasses the next psychological level of $3,000 per ounce, a milestone that, if reached, could generate additional headlines and attract even greater investment inflows. In this context, it is not far-fetched to expect gold to remain in the spotlight, serving as a barometer of global uncertainty and reflecting the ongoing search for safety amid increasingly tangible risks.