Gold prices hit $3,000 per ounce for first time

Spot gold hit $3004.86 per ounce on Friday, marking its thirteenth all-time high in 2025. Geopolitical and economic uncertainties across the globe are behind this rally as people rush to invest in this safe-haven asset.

Gold prices have already climbed 14% in 2025, after increasing 27% last year. There are multiple factors driving demand for the precious metal. Standard Chartered analyst Suki Cooper noted geopolitics and tariff changes as some of the reasons.

Since the beginning of US President Donald Trump’s administration late last year, protectionist policies have jolted global markets and his tariffs are triggering notable retaliation from China and Canada, reported Economic Times.

Nonetheless, since optimism is so high, it is smart to also consider the risks, even in the precious metal industry that is famous for being safe. For one, it could be said that gold is overvalued at the moment, given that it has been in a bull market since 2022.