Gold made the sprint to $3,000 on Friday as uncertainties about the economy and an escalating trade war drove up demand for the safe-haven asset.

Gold (GC=F) futures rose to hover above $3,008 per ounce while spot gold reached above $3,001.

The precious metal was on track for a second straight week of gains amid new data indicating moderating inflation and the announcement of retaliatory tariffs from the United States' trading partners.

"Though it feels like a psychological threshold, gold at $3,000 might just be a stepping stone if trade wars deepen," said Tony Redondo, founder of Cosmos Currency Exchange. "That said, it’s not all about Trump. Central banks, interest rate bets, geopolitical tensions, and inflation concerns are all stoking the flames."

Read more: How to invest in gold in 4 steps

Trade tensions grew this week after President Trump threatened 200% tariffs on wine and spirit imports from Europe on Thursday. The threat followed the EU's announcement of retaliatory tariffs after the US put a 25% duty on steel and aluminum.

Gold is up more than 12% year to date after making multiple record highs in recent months.

"All eyes are on how gold continues to play a role as a safe haven asset," said Joe Cavatoni, market strategist at the World Gold Council. "With rising inflation expectations, lower rates, and continued uncertainty, we continue to see support for gold looking ahead.”

Wall Street has been playing catch-up by raising price targets to keep pace with gold's rise.

In a note on Thursday, Macquarie Group predicted the precious metal will touch $3,500 in the third quarter.

"Year-to-date, gold has been running ahead of our expectations," wrote Marcus Garvey, head of commodities strategy at Macquarie.

"We are raising our gold price forecast to a 3Q25 quarter average peak of $3,150 per ounce and our single point price high to $3,500 per ounce," he added.

Wall Street strategists have attributed much of these gains to continued central bank buying and tariff uncertainty, including the possibility that even imports of the precious metal into the US won't be spared.

Institutional investors have shipped elevated amounts of physical gold bars to vaults in New York in a move to front-run tariffs and take advantage of a price disparity between London and New York.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.

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