Gold Set for Weekly Gain as US Tariff Spree Fuels Haven Demand
Gold was on track for a weekly gain, as traders sought havens after new US tariffs whipsawed markets and added to increasing uncertainty about the economic outlook.
Bullion rose slightly Friday to trade around $2,916 an ounce, up 2% so far this week. Concerns have mounted over US President Donald Trump’s moves to implement the largest tariff increases in a century, which have sparked retaliation from some nations and kept investors on edge.
Economists are largely anticipating the levies will lead to higher prices for consumers and slower growth — posing a challenge for the Federal Reserve’s dual mandate as it attempts to foster both price stability and maximum employment. Lower rates tend to benefit the precious metal, as it doesn’t pay interest.
Still, Trump eased some concerns this week by delaying Mexican and Canadian goods covered by the North American trade agreement from his 25% tariffs, offering reprieves to America’s two largest trading partners.
In the news, China’s central bank expanded its gold reserves for a fourth month in February. Looking ahead, traders will be parsing nonfarm payrolls data on Friday for any further signs of a slowing labor market, which would boost the odds of more Fed rate cuts.
Spot gold was 0.2% higher at around $2,916.20 an ounce as of 4:13 p.m. in Singapore. The Bloomberg Dollar Spot Index fell. Silver dipped, while palladium and platinum were higher.
Source : Bloomberg
