Gold Holds Near Record High as Trump Worries Ahead of U.S. Data
Gold held steady near a record high ahead of a key U.S. jobs report, as rising geopolitical tensions and economic concerns continued to support safe-haven demand.
Bullion traded near $2,860 an ounce — and up more than 2% this week — before Friday’s nonfarm payrolls data. A weak reading could raise expectations for further Federal Reserve interest rate cuts, while a stronger-than-expected number could have the opposite effect. Lower borrowing costs tend to benefit gold, since it doesn’t pay interest.
The U.S.-China trade war and concerns that President Donald Trump will follow through on threats to impose tariffs on other countries, as well as his unconventional geopolitical position, support gold’s role as a store of value in uncertain times. The precious metals market appears set to continue to rally, with prices likely to reach $3,000 an ounce within three months, Citigroup Inc. said in a note. The market is also trying to get a sense of the potential implications for the U.S. economy and monetary policy if the new administration’s policies on trade and immigration rekindle inflation and hurt growth.
Trade war concerns have prompted traders in London to shift metals to the U.S., fearing that bullion might not be exempt from potential tariffs. Earlier, Bloomberg reported that gold in Bank of England vaults was trading at a discount to the broader market, leading to weeks-long queues to withdraw the metal amid a scramble for supplies.
Spot gold rose 0.1% to $2,859.01 an ounce as of 8:13 a.m. in Singapore, after hitting an all-time high of $2,882.36 on Wednesday. The Bloomberg Dollar Spot Index was little changed, down 0.8% for the week. Silver and platinum edged up, while palladium fell.
Source: Bloomberg
