Tariff threats pave way to safe-haven gold's all-time high
Gold prices advanced to an all-time high on Wednesday as trade war tensions and concerns over global economic growth drove safe-haven flows following U.S. President Donald Trump's new tariff threats.
Spot gold was up 0.3% at $2,943.25 an ounce as of 1025 GMT after surging to an all-time-high of $2,946.75/oz earlier in the session. Prices scaled record for a ninth time this year.
U.S. gold futures rose 0.4% to $2,961.00.
"Gold's rally appears to be driven by President Trump's remarks on upcoming tariffs for autos and pharmaceuticals, which could pave the way for a push toward $3,000," said Zain Vawda, market analyst at MarketPulse by OANDA.
Since taking office, Trump imposed a 10% tariff on Chinese imports, set a 25% tariff on steel and aluminum. Adding to the tariffs agenda, the U.S. president said on Tuesday he intends to impose auto tariffs "in the neighbourhood of 25%" and similar duties on semiconductors and pharmaceutical imports.
"I don't see central banks stopping buying gold anytime soon, but rather expecting them to keep diversifying their reserves into gold and support the gold price," UBS analyst Giovanni Staunovo said.
Bullion is viewed as a hedge against rising inflation and geopolitical uncertainties, but higher rates reduce the non-yielding asset's appeal.
Meanwhile, market focus is also on the Federal Reserve's interest rate stance, with minutes of its January policy meeting due later in the day.
"Any bearish impact (on gold) from today's FOMC minutes release is expected to be short-lived," Vawda said.
Among other metals, spot silver , used in electrical components, added 0.4% to $32.99 an ounce, while auto-catalysts platinum fell 0.6% to $981.56 and palladium firmed 0.1% to $987.75.
Source: Reuters
