Gold Price Hits $3,000 for First Time on Tariff Anxiety

The price of gold set a record high on Friday, breaking above $3,000 per troy ounce for the first time as investors reckon with President Trump’s seesawing tariff policy, fears of an economic slowdown and a sinking stock market.

Gold is often sought out by investors as a safe haven during times of turmoil, and the price has risen by about 14 percent this year. By contrast, the S&P 500 index tumbled into a correction on Thursday, falling more than 10 percent over the past month as investors fret about Mr. Trump’s economic agenda.

Market watchers have upgraded their forecasts, predicting that the rally has more room to run as a trade war driven by tit-for-tat tariffs between many of the world’s largest economies darkens the economic outlook.

Rounds of U.S. tariffs have been quickly met with levies in retaliation by China, the European Union and Canada, spurring further escalation from the White House. On Thursday, Mr. Trump threatened punishing tariffs on European wine, a move that rattled producers and distributors on both sides of the Atlantic.

“While general uncertainty and deteriorating economic vibes are improving interest in gold, most of gold’s price action is around the uncertainty related to tariffs,” Helima Croft, head of global commodity strategy at RBC Capital Markets, said in a research note.

There are also fears that tariffs may be applied directly to gold imports, leading to stockpiling in the United States. Recent trade statistics have been skewed by a huge flow of gold from vaults in London and refineries in Switzerland to U.S. warehouses.

Central banks around the world have also been big buyers of gold in recent years, a longer-running factor pushing up prices. Diversifying reserves with gold, which is seen as a store of value free from geopolitical influence, is often described as a move to reduce reliance on dollars, U.S. Treasuries and other foreign-currency assets.

Eshe Nelson and Bernhard Warner contributed reporting.