Gold Breaches $3,000 Milestone: The Forces Driving a Historic Bull Run

The meteoric rise of gold shows no sign of slowing in 2025, with the precious metal surpassing the landmark $3,000 per troy ounce level for the first time in history.

After a stellar performance in 2024, which saw gold repeatedly smash records in both USD and GBP terms, gold’s trend remains firmly upward. A cocktail of economic and geopolitical factors has fuelled gold demand from private investors seeking a reliable store of value and has helped push the precious metal to its record post-$3000 high on Friday, March 14th, 2025.

The gold price in GBP has spike 2.53% since yesterday, and is now up almost 11% since the start of 2025.

As Jim Mellon, Chairman of Master Investor, puts it:

“Up 45% against the pound in the last twelve months, if you don’t have gold as part of your portfolio, why on earth not?”

Here we look at some of the key factors that are propelling gold’s meteoric bull run:

Geopolitical Tensions and Trade Wars

Trump’s latest tariff threat – one in a long line -, a potential 200% duty on EU alcohol imports, has sent further shockwaves through global markets, fuelling demand for safe-haven assets. This isn’t just a knee-jerk reaction to individual policies; investors are seeking protection against systemic risk. Meanwhile, Trump’s infamous meeting with Zelensky and now Putin casting doubts on a potential ceasefire – with a series of conditions – is intensifying instability. Additionally, the absence of an official ceasefire in Gaza underscores the fragile global landscape, further driving demand for gold as a safe-haven asset.

Central Bank Buying Frenzy

Central banks, particularly in emerging markets, are stockpiling gold to hedge against currency depreciation and economic turbulence. According to the World Gold Council Gold Demand Trends: Full Year 2024 report, central banks ‘continued to hoover up gold at an eye-watering pace,’ setting a new demand record. China’s central bank, which increased its gold reserves for the fourth straight month in February, is a prime example.

Economic Uncertainty and Inflation Concerns

Reports of economic slowdowns, inflationary pressures, and the spectre of stagflation are driving investors to seek refuge in gold. This flight to safety is reminiscent of the initial surge during the early days of the COVID-19 pandemic. The metal’s historical role as a hedge against inflation and economic instability is again driving demand.

Investor Caution

Mounting government debt, supply chain disruptions, and weakening consumer confidence are weighing on global markets. Concerns over a potential global recession and corporate earnings slowdowns are amplifying uncertainty, driving investors toward gold as a hedge against economic turbulence.

Gold: The Ultimate Hedge in Uncertain Times

With geopolitical tensions running high and macroeconomic risks mounting, gold is being chosen as the ultimate shield against political and economic unpredictability. Given the current momentum, gold at $3,500 by summer and $4,500 within the next year are within the realms of possibility.

“With escalating trade wars threatening to destabilise global markets further, investors are seeking safe-haven assets, and central banks are continuing to up their gold reserves. As a time-tested store of value, gold becomes an increasingly attractive option in this environment. As geopolitical tensions rise and economic uncertainty deepens, the growing volatility is likely to drive even more investors toward gold as the ultimate hedge against both market instability and geopolitical risks.”

Paul Williams, Managing Director at Solomon Global

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Hear more from Jim Mellon and Solomon Global on investing in gold and other opportunities at the Master Investor Show on the 29th of March.