Gold price hits $3,000 as stocks rebound: Is there more upside ahead?

Gold made history, breaking past the $3,000 per ounce mark for the first time ever, before a marginal retreat. 

Investors continue to turn to the precious metal amid economic uncertainty, while stock markets found some relief on news that a U.S. government shutdown has been averted. This rally, which has seen gold climb nearly 14% since the start of 2025, highlights its status as a go-to safe-haven asset in volatile times. Heightened global risks, including trade tensions and geopolitical instability, are further fueling demand.

The ongoing trade war between the U.S. and key partners is unsettling markets according to analysts. President Trump recently threatened a 200% tariff on European alcohol imports in response to the EU’s planned levies on American whiskey-retaliation for Trump’s newly imposed 25% tariffs on steel and aluminum.

A weaker U.S. dollar is also boosting gold’s appeal. The University of Michigan’s Consumer Sentiment Index dropped to 57.9-its lowest since November 2022-falling short of expectations and signaling declining consumer confidence.

Geopolitical tensions are adding to the uncertainty. The Houthis claimed responsibility for an attack on the USS Harry S Truman and its escort vessels in the northern Red Sea, escalating concerns in the region. "With ongoing geopolitical risks and trade disputes, gold demand remains strong," said Suki Cooper, a precious metals analyst at Standard Chartered.

However, easing tensions between Russia and Ukraine could weigh on gold prices. The U.S. and Ukraine have proposed a 30-day ceasefire to Russia, and Trump’s envoy, Steve Witkoff, suggested that a direct conversation between Trump and Putin is likely, with Putin open to discussing peace terms.

Despite potential diplomatic breakthroughs, gold’s strong momentum reflects continued investor caution amid trade conflicts, a weaker dollar, and geopolitical instability.

Nvidia bounces back as AI optimism stays strong

While gold shines, Nvidia is making moves of its own. The tech giant saw a 3.2% jump to $119.32 in Friday trading, fueled by growing excitement around AI. The boost came after Foxconn, the Taiwanese electronics powerhouse, projected that its AI server revenue would cross NT$1 trillion ($30 billion) in 2025.

Foxconn Chairman Young Liu’s forecast of AI server revenue doubling quarter-over-quarter and year-over-year signals that demand for AI products-especially Nvidia’s GPUs-remains robust, despite broader economic concerns. Inflation and fresh tariff policies from President Trump have stirred market uncertainty, but the AI sector continues to show resilience.

Investors are also eyeing Nvidia’s upcoming GPU Technology Conference next week, where CEO Jensen Huang will take the stage on March 18. Analysts expect big announcements on future AI chip developments, possibly setting the stage for a broader tech rebound. Wedbush analyst Dan Ives even called it a potential “turning point for tech stocks.”

Central bank stockpiling adds to appeal

Another key factor behind gold’s surge? Central banks aren’t slowing down their gold purchases. According to AJ Bell investment director Russ Mould, central banks snapped up around 1,045 tonnes of gold last year-marking the third consecutive year of buying above the 1,000-tonne mark.

China, in particular, has been aggressively adding to its bullion reserves for four straight months as of February. This trend highlights a broader move among central banks to reduce their dependence on the U.S. dollar, especially after the freezing of Russian central bank reserves in 2022. As GoldCore CEO David Russell put it, “Central banks are making record-level gold acquisitions, seeking to diversify away from an increasingly volatile U.S. dollar.”

What’s next? more upside or a cooling-off period?

Goldman Sachs thinks there’s still room for gold to climb beyond its $3,100 year-end target. The bank points to ongoing U.S. policy uncertainty and strong central bank demand as key drivers. Even if geopolitical tensions ease-such as a potential Russia-Ukraine ceasefire—gold buying is expected to stay higher than pre-2022 levels.

The World Gold Council’s global head of research, Juan Carlos Artigas, sees several factors supporting gold demand: “heightened geopolitical and geo-economic risk, higher inflation expectations, potentially lower rates, and the uncertainty that markets are feeling.”

On the stock market side, things are looking slightly brighter for now. The risk of a U.S. government shutdown is fading, with S&P 500 futures climbing 1% after Senate Democratic leader Chuck Schumer backed a stopgap funding bill. That’s given markets a bit of breathing room, though broader concerns about tariffs and economic policy remain in play.

Technical insights: What investors should watch next

With gold in uncharted territory above $3,000, investors are weighing whether the rally has more legs or if a pullback is coming. Central bank buying, global tensions, and economic uncertainty all suggest there’s still strong support for higher prices.

For tech investors, all eyes are on Nvidia’s GPU Technology Conference, which could be a major catalyst for AI stocks. If Nvidia delivers big updates on its next-gen chips, it could spark renewed momentum for the sector.

Key levels to watch out for are the $3,000 and $3,005 mark on the upside and the $2,860 mark on the downside. A significant dump could see prices collapse and gain some support at the $2,620 mark. Though a strong upward bias remains, RSI towering past 70 hints at overbought conditions- signalling a potential slowdown.

As for Nvidia, the key levels to watch on the upside are $123.70 and $140.00, while on the downside, key levels to watch are $113.28 and $102.83.

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