02:00 PM EDT, 03/18/2025 (MT Newswires) -- (Updates prices.)

Gold rose to a fresh record high mid-afternoon on Tuesday, firming above the US$3,000 mark as renewed violence in the Middle East prompts yet more safe-haven buying.

Gold for April delivery was last seen up US$34.10 to US$3,040.20 per ounce, the third-straight day the precious metal has traded above US$3,000.

The rise comes amid a new wave of Middle East violence, with Israel breaking a two-month ceasefire with the Hamas militant group by launching deadly airstrikes on Gaza. Separately, U.S. President Donald Trump said he will hold Iran directly responsible for further attacks on shipping by Yemen's Houthi militants after launching weekend strikes on the group.

The military actions add to a market already buoyed by safe-haven buying as investors turn to the metal amid market turmoil spurred by Trump's tariff threats.

"Gold hit a new record ... amid rising Middle East tensions and US economic concerns. Bullion rose after Israel's military strikes on Hamas in Gaza threatened a fragile truce, while Trump has increased pressure on Iran to control the Houthis," Saxo Bank noted.

Gold's rise also comes as the Federal Reserve's policy committee begins a two-day meeting that is expected to end with interest rates unchanged. The CME Fedwatch tool sees a 99% probability the Federal Open Market Committee will stick with its current policy rate despite weakening U.S. inflation.

The dollar is trading lower, with the ICE dollar index last seen down 0.12 points to 103.25. Treasury yields were mostly steady, with the U.S. two-year note last seen paying 4.036%, down 2.1 basis points, while the yield on the 10-year note was down 2.6 points to 4.28%.