Gold Hits New All-Time High Amid Record Safe Haven Demand

 

Gold Hits New All-Time High Above $2,950/ozt Amid Heightened Safe Haven Demand

(Bullion News Network) – Gold opened the week strong after a brief stutter last Friday. Gold reached an intraday high of over $2,950 per troy ounce on Monday, dropping to $2,933.50/ozt shortly after American markets opened before recovering past $2,950/ozt by market close. This marks yet another all-time high for the yellow precious metal, which has benefited from record safe haven demand to open 2025. Gold has gained over $350/ozt since January 1st, an increase of over 12.6% on the year. Geopolitical and economic uncertainty remain strong market leaders for precious metals. Donald Trump’s return to the White House has fueled fresh concerns that the U.S. leader’s tariff-heavy economic policies could raise prices domestically and inflame tensions with foreign allies and adversaries. 

At a press conference earlier today, President Trump said that the Mexican and Canadian tariffs, which were stalled for one month after both countries committed more forces to defending their borders shared with the United States, will go “forward on time, on schedule.” Barring an additional round of successful negotiations, these tariffs will begin next Tuesday on March 4th. Canada and Mexico are major importers of precious metal products to the United States, and experts say that the gold and silver markets could be significantly impacted by the 25% across-the-board tariffs being proposed. Mexico and Canada are expected to enter fresh negotiations with President Trump in order to avoid the tariffs, which are projected by some economists to cost the average American household more than $1,200 per year. 

Wall Street ended sharply lower on the news, with the Nasdaq Composite losing 1.21% and the S&P 500 sliding to begin the trading week. The threat of renewed tariffs on America’s NAFTA trading partners remains a key concern for traders, analysts say, and markets are gearing up for a volatile trading session if the import fees are finalized next Tuesday. This uncertainty is a tailwind for safe haven assets, including gold. Demand for the precious metal on Wall Street remains historically high. Last week, Goldman Sachs revised its 2025 price target for gold up to $3,100, with a strong upside in the $3,300+ range hinging on uncertainty in the wake of tariffs and trade wars under the Trump administration. 

Meanwhile, this week’s full slate of economic reports looms large.

The February consumer confidence report will be released tomorrow, and analysts project a 1.7 drop from January’s reading. Last month, the Conference Board’s Consumer Confidence Index dropped 5.4 points, with respondents indicating that inflation is an increasingly significant concern for American consumers. The expectations index also declined, settling just below 84 at 83.9. According to the Conference Board, an expectations index of lower than 80 “usually signals a recession ahead.” This month’s confidence reading could play a key role in price action this week across multiple markets, including prices for safe haven assets like gold and silver. 

On Thursday, markets will review initial jobless claims data for the month of February, which is expected to climb compared to January. Durable-goods orders are projected to increase after falling in January, while the United States GDP, also scheduled for release, is expected to remain unchanged. Pending home sales are projected to drop again but gain a bit of ground compared to last month. 

The week’s biggest report will come on Friday with the release of January’s Personal Consumption Expenditures index (PCE). The PCE is one of the Federal Reserve’s key inflation readings. Economists expect the PCE to remain unchanged from last month but anticipate a slight increase to the core PCE. The tone and tenor of this inflation report should offer traders more insight into what to expect from the FOMC when the Fed next meets on March 19th. CME FedWatch projects a 5% probability that the Fed will opt to cut interest rates by 25 bps at its next meeting, up from 3% last week. 

In the meantime, gold bulls celebrate yet another all-time high as the precious metal cruises past $2,950 per troy ounce amid heightened safe haven buying and economic uncertainty.