Gold prices soared to an unprecedented $3,000 per ounce on Friday, driven by increased demand for safe-haven assets amid investor concerns over President Donald Trump’s tariff policies and geopolitical uncertainties.

The price briefly touched a record high of $3,005 before retreating slightly to just under $3,000.

Jason Hollands, managing director at UK wealth management firm Evelyn Partners, described gold as “the go-to asset in times of panic.” He attributed the price surge to the “heightened uncertainty surrounding global trade, fueled by the Trump administration’s unpredictable and aggressive tariff strategies, along with retaliatory actions from other nations.”

Former U.S. Treasury Secretary Larry Summers pointed to gold’s rapid ascent as an indicator of growing investor unease about the country’s economic future. “It reflects the level of uncertainty we’re seeing. When everything else is in question, gold remains a strong performer,” he told CNN’s Pamela Brown and Wolf Blitzer. “This is what investors turn to when they lack confidence in the government’s economic leadership.”

Adding to market volatility, the U.S. imposed a 25% tariff on all steel and aluminum imports on Wednesday, marking the latest round of Trump 2.0 trade measures. In response, Canada and the European Union swiftly implemented countermeasures.

Tensions escalated further on Thursday when Trump threatened to impose a 200% tariff on European alcoholic beverages unless the EU withdrew its recent 50% tariff on American spirits. The administration’s inconsistent trade policies have left businesses hesitant to make investment or hiring decisions due to ongoing uncertainty.

Global economic slowdown fears have also contributed to gold’s rally. Additionally, the prolonged war in Ukraine remains a key factor supporting the metal’s value.

“Russia’s rejection of a U.S.-proposed 30-day ceasefire has reignited geopolitical instability,” noted Viktoria Kuszak, a research analyst at trading firm Sucden Financial. On Thursday, Russian President Vladimir Putin dismissed the truce proposal and set tough conditions, demanding concessions from Kyiv despite expressing theoretical support for a peace deal.

Gold’s long-term strength has been reinforced by the conflict, with prices rising roughly 60% since Russia’s 2022 invasion of Ukraine. Trevor Greetham, a senior investor at Royal London Asset Management, highlighted that central banks—especially China’s—have been increasing their gold reserves to avoid the risk of foreign asset seizures, as seen in Russia’s case.

Another factor boosting gold’s appeal is the recent weakening of the U.S. dollar. Since gold is priced in dollars, a softer greenback makes it more attractive to international buyers, further fueling demand.