Gold Price Forecast: XAU/USD rises above $3,000 to record highs amid safe-haven demand

• Gold prices soared to a record high of $3,005, fueled by strong safe-haven demand amid escalating geopolitical tensions.
• Market uncertainty deepened as US reaffirmed its commitment to striking Yemen's Houthis until they cease attacks on Red Sea shipping.
• Gold demand remained strong, bolstered by continued purchases from ETFs and central banks, with China leading acquisitions.

Gold price (XAU/USD) surged to a record high of $3,005 per troy ounce during Asian trading hours on Tuesday, driven by strong safe-haven demand amid ongoing trade tariff uncertainty and geopolitical tensions.

The US reaffirmed its commitment to striking Yemen's Houthis until they halt attacks on Red Sea shipping, further unsettling markets. US President Donald Trump warned on Monday that he would hold Iran accountable for any attacks by the Houthi group it supports in Yemen. Trump administration has since expanded the largest US military operation in the Middle East since Trump returned to office. 

On Sunday, the Houthis claimed responsibility for an assault involving 18 ballistic and cruise missiles, along with drones, targeting the USS Harry S. Truman aircraft carrier and its escorting warships in the northern Red Sea.

Meanwhile, the Israeli military reported extensive strikes on Hamas targets in Gaza. Medics in the region confirmed at least 30 fatalities in what has been described as the most intense airstrikes since the ceasefire began on January 19. A senior Hamas official accused Israel of unilaterally violating the agreement, according to Reuters.

Trade war concerns also weighed on investor sentiment, as the US and key trading partners exchanged fresh tariff threats. The demand for Gold remained robust, supported by ongoing purchases from exchange-traded funds (ETFs) and central banks--most notably China, which extended its Gold acquisitions for a fourth consecutive month.

Investors now turn their focus to upcoming central bank policy meetings, particularly the US Federal Reserve's decision later this week. The Fed is widely expected to maintain interest rates amid rising trade tensions and mounting economic concerns, with markets pricing in only two rate cuts this year.