Gold Price Breaks $2,900—Is $3,000 an Ounce Inevitable?

By Rob Bates | February 11, 2025

Gold broke the $2,900 barrier on Monday—marking the second time this month it’s hit a new milestone.

At press time on Tuesday, the yellow metal’s spot price was $2,907 an ounce. Yesterday, it reached a record high of $2,941. That’s particularly impressive since gold hit $2,800 for the first time ever earlier this month.

Many now consider $3,000-an-ounce gold—a once unimaginable prospect—inevitable, especially with long, potentially inflationary trade wars on the horizon.

Metals consultant Robin Bhar tells JCK that “$3,000 could be seen fairly quickly if trade tensions escalate.

“Gold is being shipped from London to New York because of the fears of tariffs,” he adds. “This is creating a physical shortage of gold in London, and this is reducing liquidity in the main trading center for gold. This lack of liquidity in London is creating a squeeze which is propelling the price higher.”

Citibank analysts also believe we’ll be seeing $3,000-an-ounce soon.

“The gold bull market looks set to continue under Trump 2.0, with trade wars and geopolitical tensions reinforcing the reserve diversification/de-dollarization trend,” they said in a research note, quoted by Reuters.

In a recent comment, the World Gold Council brought up another factor that could give gold a boost: the upcoming German elections. If the euro grows stronger, that could drive the dollar down further—and a depressed dollar has traditionally been bullish for gold.

All in all, the gold price has risen 10.8% since Jan. 1.

Credit: Getty Images