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$3,000 Gold Price: What It Says About Expectations for the Economy.

    Financial Collateral > Banking News > Economy > $3,000 Gold Price: What It Says About Expectations for the Economy.
March 27, 2025
Stella
Economy
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If there’s one thing market participants don’t like, it’s uncertainty.

But that’s just what there’s plenty of at the moment, given the unclear outlook for the global economy because of a potential full-blown trade war, or for the U.S. economy amid mass federal layoffs.

In response to abrupt moves by the administration of President Donald Trump, investors have been selling equities, sending the S&P 500 down 4.5% so far in 2025. They’ve also been selling the U.S. dollar, with the greenback measured against a basket of other currencies in the ICE U.S. Dollar Index dropping by a similar amount.

At the same time, they’ve been turning to an old standby of perceived safety – gold.

The market jitters have helped send the precious metal above $3,000 an ounce for the first time, and that can tell us a lot about where investors’ heads are at, even if it doesn’t provide a crystal ball about what the future will bring.

“The present administration did sweeping federal cuts and started leveraging taxing powers against foreign trade partners in a rather quick fashion,” says John Gillet, CEO of Gillet Agency, a financial planning company in Florida. “Investors are experiencing a bit of whiplash from the wave of events.”

In addition to general economic, political and social uncertainty, people appear to be buying gold because it got over a big round number that added to its momentum, says Brett Friedman, managing partner with risk management advisory Winhall Risk Analytics.

Source: MoneyUSNews

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