The price of gold has reached a historic milestone, surpassing $3,000 per ounce for the first time as demand for the precious metal rises amidst concerns over a global trade war. Often regarded as a safe-haven asset, gold attracts investors during times of economic instability.

Ongoing trade tensions between the United States and its major trading partners have unsettled financial markets, raising fears about the broader economic impact on businesses and consumers worldwide. The imposition of tariffs—taxes levied on imported goods—has sparked inflation worries, prompting investors to turn to gold for stability.

Tariffs increase costs for businesses, which may pass them on to consumers through higher prices, exacerbating the cost of living. The latest development in the trade dispute saw U.S. President Donald Trump announce a potential 200% tariff on alcoholic beverages imported from the European Union (EU). This move was a response to the EU’s plan to impose a 50% tax on American whiskey imports, following Trump’s decision to apply blanket tariffs on all steel and aluminum imports into the U.S. Additionally, levies on Chinese imports have been raised to a minimum of 20%.

Suki Cooper, a precious metals analyst at Standard Chartered, highlighted the continued strong demand for gold amid geopolitical uncertainty and shifting tariff policies. She noted that multiple factors are fueling gold’s appeal, including ongoing purchases by central banks.

Meanwhile, Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany, believes that gold’s rally is far from over. He suggests that escalating geopolitical tensions, increasing tariffs, and rising financial market uncertainty are driving investors toward gold as a reliable store of value.

With these economic pressures mounting, experts predict that gold may continue its upward trajectory as investors seek refuge in one of the most trusted financial assets.