Gold price hits record high above $3K as investors spooked by tariff fears seek safe haven

Gold struck a record-high price on Friday as spooked investors rushed to a safe haven over fears that President Trump’s tariffs could reheat inflation and cause an economic slowdown. The precious metal surpassed $3,000 per ounce for the first time ever before dipping below that threshold in midafternoon trading.Gold’s draw as a safe haven could see it surge to a record high of $3,500 an ounce in the third quarter this year, according to Macquarie strategists who raised their gold price outlook.RBC Capital Markets strategists have also lifted their gold price forecasts, to $2,844 per ounce in 2025, a slight 1% increase from their previous prediction, and $3,111 per ounce in 2026, up 8% from their initial estimate.There are also fears that tariffs may be imposed directly on gold imports, so businesses have been rushing to stockpile – leading to a massive flow of gold from overseas refineries to US warehouses.Central banks around the world have also been buying up gold, another factor that has helped to drive up the price, according to Victoria Hasler, head of fund research at Hargreaves Lansdown.“It’s probably safe to assume that at least part of the reason is a desire to diversify reserves away from US dollars,” she told BBC News.Meanwhile, the S&P 500 fell into a correction on Thursday – falling about 10% over the past month – as uncertainty around Trump’s back-and-forth trade policies led to massive sell-offs. Tech stocks, particularly the “Magnificent 7” firms including big names like Apple and Tesla, have shed more than $1.5 trillion off their combined valuation since the start of 2025 after enjoying huge gains last year.Trump’s threatened tariffs on Canada and Mexico, which are currently on a 30-day pause; his hefty 20% levy on China; and his stiff 25% tariffs on aluminum and steel tariffs across the board have quickly been met with retaliatory taxes.Most recently, the president on Thursday threatened up to 200% tariffs on alcoholic...