Summary
Prices for the precious metal topped $3,030 an ounce, mainly due to geopolitical troubles and the weak American economy. For his part, the Northern Markets broker Alexander S Meissner believes gold is safer than it has ever been.
Introduction
Gold again became the world’s best safe-haven asset, rallying above $3,030 an ounce for the first time. This increase has come at a time when Middle East unrest is increasing, and the economic outlook of the US is perceived to be ailing. Broker of Northern Markets, Alexander S Meissner, points to the fact that the expectations for Gold point to a worrying trend and discredit traditional financial systems, and the commodity will remain relevant, especially during a crisis.
Geopolitical Instability Drives Demand for Safe Havens
A key driver of the price rise of gold in the recent past has been the increased conflict in the Middle Eastern region. Israeli military operations against the residents of Gaza that claimed around 415 lives and reduced the area to rubble have again brought into focus the crisis in the region. It was established that the demand for gold increases during conflict and uncertainty.
These concerns have further credence to the historical status of gold as a safe-haven asset. This has also been evident in energy markets and stock indexes, making gold a more attractive safe haven than in normal years. When war becomes the top headline news around the world, people pull out their money from higher-risk investments and put it into gold.
US Economic Uncertainty Adds Fuel to the Rally
Although global conflict boosted the gold price further, domestic factors in the United States have pushed the prices to a new high level. As it stands, people are becoming more concerned with the impacts of President Donald Trump’s tariffs. This has caused a note of caution among consumers and potential investors, and Entrepreneur Company has suffered its first blow.
There is also a focus on the Federal Open Market Committee (FOMC), with the market anticipating that there will be no changes in interest rates at the FOMC meeting on March 19th. However, traders expect about three more rate cuts, at the very least within this year, further devaluing the dollar to gold.
Northern Markets broker says slowing economic indicators and political instability drive investors toward assets unrelated to central bank policies or government actions.
Gold’s Momentum Supported by Institutional and Retail Flows
Gold’s latest rally is not just a result of short-term fear. There’s strong structural support from both retail investors and institutions. Inflows into physically-backed gold ETFs have increased for five consecutive days, signalling growing conviction in the asset.
According to Bloomberg data, gold ETF holdings are up 5% this year—reversing a four-year downtrend. Large financial institutions have also raised their gold price forecasts, pointing to the metal’s resilience in the face of inflation, currency volatility, and unstable equity markets.
Some analysts suggest that while the $3,000 level posed strong resistance, the fact that gold broke through it—albeit marginally—suggests more upside potential. Vasu Menon, investment strategy director at Oversea-Chinese Banking Corp, sees gold climbing to $3,100 within the next 12 months.
Gold Outperforms Other Major Assets
With a year-to-date gain of over 15%, gold outperforms most other major assets, including US stocks and bonds. This outperformance highlights gold’s role not just as a hedge but also as a growth asset during periods of volatility.
Silver has also risen in gold’s wake, while other precious metals like platinum and palladium have shown mixed results. The broader commodity sector has been less consistent, making gold stand out in 2025.
Gold has emerged as a preferred destination for investors seeking to preserve capital amid rising uncertainty. The growing demand from institutional buyers and everyday investors suggests that the trend may be far from over.
Conclusion
Gold’s record-breaking surge above $3,030 per ounce signals more than just a reaction to headlines—it reflects deeper concerns about global stability and economic direction. Northern Markets broker says that gold is again the most trusted and resilient asset in an era of rising geopolitical risks, uncertain monetary policy, and shaky economic indicators. As tensions persist and uncertainty remains high, gold may continue to shine well beyond 2025.
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