Mid East tensions, tariff jitters fuel gold's record rally

3.18.25 - Mid East tensions, tariff jitters fuel gold's record rally

Gold last traded at $3,034 an ounce. Silver at $34.01 an ounce.

Middle East tensions, tariff jitters fuel gold's record rally -Reuters

March 18 (Reuters) - Gold prices rose 1% to hit a fresh record high on Tuesday, anchored above the $3,000/oz mark, as rising Middle East tensions and trade uncertainties due to U.S. President Donald Trump's tariff plans fueled demand for the safe-haven asset.

Spot gold hit a peak of $3,038.26 per ounce and by 12:00 p.m. ET (1600 GMT) was up 1% at $3,031.22 an ounce. Prices climbed above $3,000 for the first time on March 14.

Bullion, which had a stellar run last year, has maintained its momentum this year as well, gaining over 15% year-to-date and hitting record highs 14 times.

"The escalation in the Middle East tensions - as Israel launched military strikes on Hamas targets in Gaza, which threatens to undermine the ceasefire - has injected a new bid into gold," said Nicky Shiels, head of metals strategy at MKS PAMP SA.

Israeli airstrikes killed more than 400 people in Gaza, threatening a two-month ceasefire.

Meanwhile, Donald Trump has floated a series of U.S. tariff plans, including a flat 25% duty on steel and aluminum that came into effect in February, as well as reciprocal and sectoral tariffs that he said will be imposed on April 2.

Gold is traditionally regarded as a safe-haven investment during periods of economic or geopolitical instability.