Gold hits record high as Trump tariff concerns mount
Gold prices rose to an all-time high and to trade above the $2,950 per ounce level on Thursday, as concerns U.S. President Donald Trump's tariff threats will unleash a global trade war drove investor appetite for the metal.
Spot gold climbed 0.7% to $2,953.12 an ounce, as of 0853 GMT, after hitting $2,954.69 earlier in the session, its tenth record high this year.
U.S. gold futures gained 1.2% to $2,970.7.
Gold, a safe-haven in times of uncertainty, has gained 12% so far this year.
"The $3,000 level seems to be having a magnetic effect on the market and even though by most considerations the market is technically overbought, it seems determined to crack that magic level," said independent analyst Ross Norman.
"The $2,950 is seen as the last chart resistance before the market elevates to challenge the $3,000 level and it is now looking like a question of when and not if."
Trump said on Wednesday he would announce tariffs related to lumber, cars, semiconductors and pharmaceuticals "over the next month or sooner".
Since taking office on January 20, Trump has imposed a 10% tariff on Chinese imports and a 25% tariff on steel and aluminium.
Trump also denounced Ukrainian President Volodymyr Zelenskiy as a dictator on Wednesday and told him he had to move quickly to secure peace or risk losing his country.
"While there is speculation that potential Ukraine-Russia peace talks could lead to some unwinding in gold, any weakness in gold may be temporary," IG market strategist Yeap Jun Rong wrote in a note.
Elsewhere, minutes of the Federal Reserve's last policy meeting on Wednesday showed Trump's initial policy proposals had stoked concerns over rising inflation, reinforcing the central bank's stance to hold off on further rate cuts.
Spot silver added 0.9% to $33 an ounce. Platinum rose 0.3% to $974.85, while palladium advanced 1.4% to $981.70.
Source: Reuters
