Gold scaled a record peak on Friday as U.S. President Donald Trump’s fresh tariffs fuelled fears that the global trade war will further intensify and prompted investors to seek refuge in the safe-haven metal.
Spot gold climbed 0.9% to $3,083.33 an ounce as of 0710 GMT after hitting an all-time high of $3,086.21 earlier in the session. Bullion is up 2% this week and is on track for a fourth straight weekly gain.
U.S. gold futures added 1% to $3,092.50.
“Gold has the wind at its back at the moment. U.S. trade policy, U.S. fiscal policy, geopolitics and a growth slowdown – everything is blowing in gold’s direction,” Capital.com’s financial market analyst Kyle Rodda said, adding that $3,100/oz is the next big milestone.
Uncertainty around tariffs, potential for interest rate cuts, geopolitical conflicts and central bank buying have all fuelled gold’s surge past the key $3,000/oz milestone.
“Markets are yet to have an understanding of what the retaliatory responses will be”, which is also helping gold, Marex analyst Edward Meir said.
Trump’s reciprocal tariffs, due to take effect on April 2, could stoke inflation, dampen economic growth and escalate trade disputes.
“We continue to hold a bullish outlook towards gold prices, with gold continuing to benefit from U.S. policy uncertainty, trade tensions, military conflicts around the world, inflation worries and macro uncertainty,” BMI analysts said in a note.
Gold, traditionally seen as a hedge against economic and political instability, thrives in a low-interest rate environment.
Richmond Federal Reserve President Tom Barkin asserted that the central bank’s current “moderately restrictive” monetary policy is appropriate, given high levels of uncertainty and rapid policy changes in the U.S. government.
The market now awaits the U.S. personal consumption expenditures data due later in the day.
Spot silver was steady at $34.41 an ounce, platinum eased 0.1% to $985.34, and palladium added 0.5% to $980.14. All three were set for weekly gains.
