Gold pops above US$3,000/oz for first time in historic safe-haven rally

Gold broke through the key US$3,000 (HK$23,400) barrier on Friday for the first time as investors piled on to a historic rally in the safe haven asset to seek cover from economic uncertainty sparked by US President Donald Trump's tariff war.

Spot gold rose 0.1 percent to US$2,991.00 an ounce at 9:42 am ET (1342 GMT) after hitting an all-time high of US$3,004.86.

US gold futures gained 0.4 percent to US$3,002.30.

Gold's surge past the US$3,000 milestone was driven by "beleaguered investors seeking the ultimate safe-haven asset given Trump's tumult on stock markets," said Tai Wong, an independent metals trader.

Traditionally viewed as a safe store of value during geopolitical turmoil, bullion has risen nearly 14 percent so far this year, driven in part by concerns over the impact of Trump's tariffs and a selloff in stock markets.

Trump's protectionist policies have unsettled global markets, with US stocks witnessing a weeklong sell-off, sending the S&P 500 plunging into correction territory, losing US$4 trillion.

"Real asset money managers, particularly in the West, needed a strong stock market and economic slowdown scare to return to gold — and that's happening now," said Ole Hansen, head of commodity strategy at Saxo Bank.

Gold has also been supported by central bank demand, with key buyer China building its bullion reserves for a fourth straight month in February.

"Central banks continue record-level gold acquisitions, seeking to diversify away from an increasingly volatile US dollar," said GoldCore chief executive, David Russell.

Expectations of monetary easing by the US Federal Reserve have also helped zero-yield gold. The Fed is expected to keep rates unchanged next week, although traders are betting on cuts to resume in June.

However, gold could see a significant correction, "when a resolution to trade issues appears and asset markets recover." Wong said.

In other metals, silver added 0.3 percent to US$33.9 an ounce, platinum gained 0.3 percent to US$997 and palladium firmed 2.1 percent to US$978.18.

REUTERS