Gold has reached a new historic high, surpassing $3,017 per ounce, as rising tensions in the Middle East bolster its position as a safe-haven asset, while investors assess U.S. economic data fueling concerns over an economic slowdown.

The price of the precious metal surged by up to 0.6% following Israel’s announcement on Tuesday that it had conducted military strikes against Hamas targets in Gaza, a move that threatens to disrupt a fragile ceasefire. Palestinian residents reported multiple airstrikes across various areas of the Gaza Strip.

At the same time, investors are evaluating U.S. retail sales data, released on Monday, which showed a smaller-than-expected increase in February. While the figures indicate weaker consumer spending on goods, there was no significant sign of a major decline, meaning market expectations for imminent Federal Reserve rate cuts remained largely unchanged.

However, corporations, investors, and economists remain cautious, as consumer sentiment deteriorates, signs of financial strain intensify, and risks of escalating trade wars persist due to the policies of U.S. President Donald Trump.

The worsening outlook for both the U.S. and global economy has further reinforced gold’s role as a store of value during times of uncertainty. The precious metal has gained more than 14% since the beginning of the year, extending its bullish rally from 2024.

Several major banks have raised their forecasts for gold prices in recent weeks.

Spot gold prices stood at $3,014.60 per ounce, up 0.5% at 1:05 p.m. Singapore time. Meanwhile, the Bloomberg Dollar Spot Index rose 0.1%. Prices for silver, platinum, and palladium also moved higher.