- Gold Price Surge: Gold breached the $3,000 per ounce resistance level on 14 March 2025, reaching an all-time high of $3,004.86 amid escalating trade hostilities
- Market Reactions: The S&P 500 entered correction territory, down 10% from recent peaks, as U.S. tariff threats on European imports sparked fears of global trade fragmentation
- Safe-Haven Demand: Geopolitical tensions and macroeconomic uncertainty have amplified gold’s appeal as a hedge, with significant ETF inflows, central bank accumulation, particularly from China
Harare- Gold breached the critical $3 000 per ounce resistance level on 14 March 2025 as investors flocked to the safe - haven asset amid escalating trade hostilities and geopolitical volatility.
Spot prices surged to an all - time high of $3 004.86 intraday before retracing marginally to $2 986.26 on profit - taking activity reflecting heightened risk - aversion triggered by U.S. President Donald Trump’s 200% tariff threat on European alcohol imports.
Equity markets tumbled with the S&P 500 entering correction territory down 10% from recent peaks as Trump’s protectionist measures ignited fears of global trade fragmentation.
The EU retaliated with proposed tariffs on U.S. whiskey while Canada escalated its WTO dispute over U.S. steel and aluminium levies.
Failed bilateral negotiations exacerbated macroeconomic uncertainty amplifying gold’s appeal as a hedge against policy - driven market dislocations.
Geopolitical tensions further bolstered bullion’s rally as U.S. military strikes in Yemen heightened Middle East risk premiums.
Gold stabilized near $2 980 per ounce on 17 March supported by sustained ETF inflows and central bank accumulation notably China’s fourth consecutive month of reserve diversification.
Stagflationary risks and dollar debasement concerns are structural catalysts for gold’s 14% YTD gain.
Forward - looking indicators suggest continued volatility with the CBOE Volatility Index (VIX) remaining elevated and tariff - induced inflation threatening corporate earnings.
Market participants anticipate prolonged safe - haven demand as portfolio managers rebalance allocations to mitigate exposure to equity market corrections and currency depreciation risks.
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