The surge marks a substantial rally, with gold prices increasing by over 50% since the beginning of 2023 and 30% in the past year alone. At 10am GMT, bullion climbed 0.4% to $3,001.20, breaching the $3,000 psychological barrier for the first time. Since the beginning of the 21st century, gold has witnessed a tenfold increase, outperforming major stock indices like the S&P 500 and FTSE 100.

Analysts attribute this bullish trend to several factors, including the uncertainty generated by trade policies and the ongoing de-dollarisation trend spurred by Russia’s invasion of Ukraine. This has led to sustained demand from central banks and emerging market investors, City AM reports.

John Reade, senior market strategist at the World Gold Council, described the $3,000 milestone as “significant,” emphasising gold’s role as a safe haven during turbulent times. “Gold has proven to perform well even in risk-off environments,” he stated. Thomas Kertsos of First Eagle Investment Management LLC echoed this sentiment, noting gold’s ability to “preserve value” and maintain purchasing power over centuries.

The record-breaking price has fuelled speculation about further gains, with some analysts predicting a potential rise to $3,500. Bank of America analysts suggested that achieving this would require a 10% increase in investment demand – a challenging but not insurmountable feat.