During the trading period on Tuesday, $XAU/USD (XAUUSD.CFD)$ spot andFutures Tradingprices have once again breached the critical $3,000 barrier, reaching historical peaks. This is the second time in a week that Gold prices have reached this critical level, primarily because global investors are seeking safety in response to concerns about the global economy triggered by U.S. President Trump's globally focused tariff policies, prompting investors to concentrate their so-called 'safe-haven investments' on Gold amid the backdrop of a new round of global trade tensions and the sudden deterioration of geopolitical situations in the Middle East.

Last Friday, Gold prices first broke through the monumental milestone of $3000 per ounce.

Historically regarded as a core hedging instrument against geopolitical instability, Gold has risen over 14% this year. Since Trump took office in January, Gold has set 14 historical highs as global trade tensions have heightened demand for safety.

Trump has proposed a series of tariff plans centered on 'Make America Great Again', including a 25% Global uniform tariff on Steel and Aluminum that took effect in February, as well as a proposed Global reciprocal tariff and so-called 'Industry extra tariffs' for specific sectors to be implemented on April 2.

Gold has surged significantly due to the continued weakness of the USD and the uncertainty surrounding the tariff policies of the Trump administration. As gold reaches an all-time high, with no apparent resistance on the charts, speculative Bids from technical analysis and chart-based algorithmic trading have flooded in, said Analyst Edward Meir from Marex.

As gold strengthens significantly, the USD, which measures the strength of the dollar against a basket of sovereign currencies, hovers near its lowest point in five months, making gold more attractive to overseas buyers.

The latest economic forecast data to be released by Federal Reserve officials this week will provide the most specific evidence so far of the potential impact of the Trump administration's policies on the US economy and Federal Reserve monetary policy.

Economists have significantly lowered their expectations for US economic growth this year, raising market concerns about a potential economic recession in the USA. More and more investors anticipate that inflation in the USA will rise significantly under the new round of 'global tariff wars' initiated by Trump, which has also led to the sustained weakening of US stocks and the USD, which have been leading global Assets in recent years, especially as US stocks have underperformed most global benchmark indices this year.

The series of new foreign tariff policies recently announced by Trump, who is returning to the presidency for his second term, has severely hit the confidence index of US enterprises and consumers, significantly raising consumer inflation expectations and recession expectations. This has led global Institutions and individual investors to become increasingly cautious about investing in the US market. Since February, when the new US government led by Trump has fully focused on foreign tariff policies, an increasing amount of global funds have fled the US stock market.

The market had eagerly anticipated the so-called 'Trump Put Options' to significantly boost the underperforming US stock market this year, but neither Trump nor US Treasury Secretary Mnuchin has disclosed any supportive stance towards the US stock market. Mnuchin emphasized that as the USA economy becomes less reliant on government spending, it may inevitably undergo a 'detox' period. Trump himself stated that the US economy will experience a 'transition period', and that the tariff policies will inevitably bring 'disruption', stressing that tariffs are aimed at making America prosperous again and to 'Make America Great Again'.

Morgan Stanley recently stated that without positive catalysts from Trump or the Federal Reserve, a reversal in US stock trends is unlikely. Mike Wilson, Morgan Stanley's Chief US Equity Strategist who accurately predicted the plunge of the US stock market in 2022, recently wrote that unless the 'Trump 2.0' economic growth agenda starts to provide real economic growth drivers (such as tax cuts, deregulation, or reducing market crowding effects), or the Federal Reserve announces a rate cut again, a reversal in US stock trends is unlikely.

The deteriorating geopolitical situation also supports the continued ascent of Gold.

The sudden deterioration of geopolitical situations is also a core driving force behind the recent record high prices of Gold. On Monday, medical personnel reported that Israeli airstrikes resulted in the deaths of three Palestinians in the Gaza Strip, with analysts pointing out that this airstrike signifies a lack of positive progress in the negotiations to maintain the ceasefire agreement between Israel and Hamas.

In addition, the recent escalation of pressure by the Trump-led US government on the Houthis has further worsened the geopolitical situation in the Middle East. US President Trump warned on Monday (March 17) that he would hold Iran accountable for any attacks launched by the Houthis it supports in Yemen, while the US expanded its largest military operation in the Middle East since Trump returned to the White House, with the recent scale of US military presence in the region far exceeding that during the Biden administration. In response to the threats posed by the Houthis to international shipping, including US transport vessels, the US launched a new round of airstrikes and warned Iran of 'terrible consequences.' This hardline stance not only escalates tensions between the US and Iran but may also have a significant negative impact on an already stabilizing situation in the Middle East.

"The potential escalation of military operations by the US in the Middle East, as well as Israeli airstrikes, may trigger tensions in the region again, which could become another positive factor driving Gold prices up," said Kyle Rodda, an Analyst from Capital.com.

$XAG/USD (XAGUSD.FX)$ Following the rise in Gold, it reached $33.911 per ounce at the time of writing.

Safe haven preferred! UBS Group has set a bullish target for Gold at $3200, while Macquarie expects it to rise to $3500.

UBS Group has become the latest large international commercial bank to raise its gold price forecast, mainly due to the increasing likelihood of a prolonged global trade war. The UBS Analyst team expects this situation to continue driving investors to actively Buy Gold, the preferred asset.safe-haven assetUBS has raised its Gold price forecast for the next four quarters to $3,200 per ounce.

UBS Analysts, including Wayne Gordon and Giovanni Staunovo, stated on Monday that as the escalating trade conflict highlights Gold's role as a store of value during uncertain times, the trading price of Gold for the next four quarters will reach $3,200 per ounce, an increase from the bank's previous long-term forecast of $3,000.

UBS stated that US President Donald Trump plans to impose extensive reciprocal tariffs and additional tariffs on specific industries beginning April 2, which is the latest 'global tariff threat' and is expected to be an imminent global risk event that could stimulate ongoing safe-haven demand across the market. Last Friday, Gold prices surpassed the critical psychological threshold of $3000 per ounce for the first time in history. Gold prices will also benefit from the deteriorating outlook for the US economy, with traders currently expecting further rate cuts from the Federal Reserve as recession fears intensify.

Other major commercial Banks have also chosen to raise their expectations for Gold prices recently. Last week, Macquarie expected Gold prices to soar to $3,500 per ounce in the second quarter, while BNP Paribas predicted the average Gold price will be well above $3,000.

Editor/danial