Gold rises above $3,000 for the first time as tariffs breed uncertainty

The price of gold surged past $3,000 per ounce for the first time on Friday in a historic rally as traders look for safety in an uncertain market.

Spot gold hit a record $3,004.86 per ounce early on Friday, before paring some of those gains amid trading volatility later in the morning.

Gold is often viewed as a safe haven for investors during periods of high inflation and economic volatility. That’s pushed prices up by more than 12% so far this year, as President Donald Trump’s tariffs stoke fears of a recession and slam stocks.

The U.S. has levied new tariffs on China, Canada, and Mexico, threatened additional tariffs on the European Union and the BRICS coalition of nations, and enacted tariffs on all imports of steel and aluminum. As soon as April 2, Trump’s so-called “reciprocal” tariffs could kick in on other trade partners, including Vietnam and India.

Trump’s latest threat is a 200% tariff on European wine and alcohol, which he proposed as retaliation for the E.U.’s measures hitting back at the steel and aluminum tariffs. China and Canada have both announced their own retaliation for the U.S.’s tariffs, including both tariffs and non-economic actions.

The S&P 500 index fell more than 10% from its recent peak, officially entering correction territory on Thursday, before rebounding slightly on Friday. It was the fastest shift to a correction since the six trading days at the start of the Covid-19 pandemic in March 2020. The Nasdaq composite climbed 210 points, 1.4%, and the Dow Jones Industrial Average gained 263 points, or 0.64%, on Friday after days of declines.

“We aren’t too surprised about the volatility of this magnitude,” said Mike Reynolds, Glenmede’s VP for investment strategy. “It’s not just the tariffs themselves that have been proposed, it’s that uncertainty that there could be additional levies just around the corner.”

Goldman Sachs (GS+3.12%) said last week that the likelihood of a recessio