Gold hits fresh ATH amid rising geopolitical tensions

Gold rises to a new record high above $3,017 per ounce, as escalating tensions in the Middle East further highlighted the appeal of the precious metal as a safe haven, while investors assessed U.S. data that increased concerns about economic slowdown. Gold bars gained up to 0.6% after Israel announced on Tuesday that it had carried out military strikes on Hamas targets in Gaza – a move that threatens to undermine the fragile ceasefire. Palestinian residents reported multiple Israeli airstrikes across various parts of the Gaza Strip.

Traders were also processing U.S. retail sales data from Monday, which grew more slowly than expected in February. While the numbers showed weak spending on goods, there were no signs of a severe contraction, and the data did not significantly impact traders expectations for a rate cut from the Federal Reserve.

Nevertheless, companies, investors, and economists remain cautious, as consumer confidence deteriorates and signs of financial strain increase amid the risks of escalating trade wars sparked by U.S. President Donald Trump.

The darker outlook for both the U.S. and global economies further emphasized gold’s role as a store of value in uncertain times. The metal has risen more than 14% since the beginning of the year, extending its strong annual increase in 2024. In recent weeks, several major banks have raised their price forecasts for this year.